ETFs Investors Have Been Buying Since the Election
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It’s been a little over a week since investors found out that Donald Trump would be the next president of the United States. Since then, stocks have rocketed higher, while bonds have retreated.
In general (Friday’s pullback notwithstanding), investors have been feeling good about their investments and the prospects for the economy and financial markets going forward.
That enthusiasm is reflected in ETF inflows, which surged to a new annual record last week thanks to $46 billion of inflows just over the past five trading sessions.
It raises the question, though: where have investors been putting money to work in ETFs since the election?
ETF Giants Have Earned Billions Post-Election
The answer to that question probably won’t surprise you. Familiar ETF giants, like the Invesco QQQ Trust (QQQ), the SPDR S&P 500 ETF Trust (SPY), and the Vanguard S&P 500 ETF (VOO) have gathered billions of dollars of new assets over the past week.
The iShares Russell 2000 ETF (IWM), which surged 6% the day after the election, has also been a big flows winner.
Small cap ETFs like IWM, along with financials ETFs like the Financial Select Sector SPDR Fund (XLF)—another top asset-gatherer—are expected to benefit from the Trump administration’s deregulation agenda.
So, too, is the cryptocurrency industry: bitcoin has skyrocketed since the election and the iShares Bitcoin Trust ETF (IBIT) has seen enormous inflows in that period.
One of the lesser-known ETFs to see strong demand in the wake of the election is the JPMorgan Global Select Equity ETF (JGLO), an active ETF that focuses on global companies with high-quality earnings growth and lower valuations.
The Invesco S&P 500 Low Volatility ETF (SPLV) is another lower-profile ETF to sneak into the top inflows group.
Finally, some investors are just happy to ride the wave. Two momentum ETFs, the iShares MSCI USA Momentum Factor ETF (MTUM) and the Invesco S&P 500 Momentum ETF (SPMO), were among the top flows winners since the election.