Year-to-date, the United States has been the top recipient of investor ETF inflows mostly on behalf of the SPDR Dow Jones Industrial Average ETF, the Vanguard S&P 500 ETF and the iShares Core S&P Small-Cap ETF.
The SPDR Dow Jones Industrial Average ETF has been popular among the investor community as the Dow Jones Industrial Average index (price-weighted*) hit 20K for the first time due to a slew of better-than-expected corporate earnings and outperformance from its constituents.
Below is a complete list of the constituents and its year-to-date performance sorted by price since the index is price-weighted (stocks with a higher price will be given more weight and, therefore, will have a greater influence over the performance of the index).
Broadly speaking, the rush to ETFs is largely the result of a push to embrace funds that mimic broad indexes for a fraction of the cost of traditional actively managed mutual funds.
Overall, money continues to flow heavily into the U.S. ETF market. Last week, $10.3 billion in new assets came into the market. With January’s $40 billion in inflows setting a new monthly record for ETFs, the total so far in 2017 is well above $50 billion, according to ETF.com. Indexing pioneer Vanguard Group has climbed to $4 trillion in assets for the first time, according to the Wall Street Journal.
*Investopedia: A price-weighted index is a stock index in which each stock influences the index in proportion to its price per share. The value of the index is generated by adding the prices of each of the stocks in the index and dividing them by the total number of stocks. Stocks with a higher price will be given more weight and, therefore, will have a greater influence over the performance of the index.
Categories: Capital Markets