Markets started off November with the best election week performance since 1932, and a subsequent rally after both Pfizer PFE and BioNTech and Moderna announced encouraging results from clinical trials of their respective vaccine candidates. Markets last week seemed to pause the rally and come to grips with the reality of surging COVID cases and economic shutdowns. However, this week, the rally has continued with a new partnership – AstraZeneca and Oxford University- revealing encouraging vaccine data of their own. For the foreseeable future, however, investors will have to consistently weigh the realities of the 2nd wave of COVID, with a light at the end of the tunnel. Time will tell what will happen in the short-term, however, for the first time since the start of the pandemic, it appears that the end is finally in sight. A good way to manage this unpredictability, and add diversity to your portfolio is through investing in ETFs. Q.ai’s deep learning algorithms have identified several ETFs to look out for this week based on their fund flows over the last 90-days, 30-days, and 7-days. We have identified one Top Buy, one Attractive, two Unattractive, and three Top Shorts for this week. We also included two interesting Unrated ETFs to be mindful of as well.
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iShares Core U.S. Aggregate Bond ETF (AGG)
Our sole Top Buy for the week is the iShares Core U.S. Aggregate Bond ETF AGG . This ETF aims to track an index composed of the total U.S. investment-grade bond market. This ETF is also midsized in terms of AUM with $82,507,996,810.20 AUM. The ETF has also witnessed consistent fund flows with a 90-day fund flow of $3,706,660,110.00, 30-day fund flow of $940,736,460.00, and 1-week fund flow of $565,448,120.00. Its net expense ratio of .05% is also reasonable.
Industrial Select Sector SPDR Fund (XLI)
For the second consecutive week, our lone Attractive ETF XLI is the Industrial Select Sector SPDR Fund. This ETF aims to represent the industrial sector of the S&P 500, and provide investors with exposure to this sector. The ETF is smaller compared to other ETFs on this list with $15,304,093,055.39 AUM. The ETF has also seen positive fund flows with a 90-day fund flow of $2,634,543,712.30, 30-day fund flow of $1,016,074,882.40, and 1-week fund flow of $702,514,051.80. The ETF also has a very decent .13% net expense ratio.
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Vanguard Total Stock Market ETF (VTI)
The Vanguard Total Stock Market ETF VTI is our first Unattractive ETF for this week for the second consecutive week. This ETF aims to track the broader stock market, across all indices. The ETF includes stocks of all cap sizes, and both growth stocks and value stocks. The ETF is on the larger side with $183,995,928,467.47 AUM. It has seen consistently positive fund flows, with a 90-day fund flow of $12,975,669,345.15, 30-day fund flow of $4,940,870,106.37, and 1-week fund flow of $1,654,873,094.21. Its net expense ratio of .03% is also very cheap and reasonable.
iShares S&P 500 ETF (IVV)
The final Unattractive ETF is an ETF that seeks to track the S&P 500-the iShares S&P 500 ETF. With $230,374,843,320.00 AUM, it is not quite as large as comparable S&P ETFs such as the SPDR S&P 500 ETF, however, it is still a very large ETF based on AUM. Its fund flows have also been consistently positive with a 90-day fund flow of $6,144,433,495.00, 30-day fund flow of $2,127,900,740.00, and 1-week fund flow of $778,592,935.00. With a net expense ratio of .03, it is also very cheap.
iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD)
The first Top Short ETF for this week is the iShares iBoxx $ Investment Grade Corporate Bond ETF LQD . This ETF is composed of an index made up of over 1000 US investment grade corporate bonds. With top holdings made up of bonds issued from companies such as Bank of America BAC , JP Morgan, Wells Fargo WFC , Comcast CMCSA , and AT&T, the goal of the ETF is to seek stability and pursue income. This ETF is mid-sized, and consists of $58,031,550,858.20 AUM. The ETF has also seen consistently positive fund flows. The ETF has fund flows of $671,826,880.00 over 90-days, $239,259,250.00 over 30-days, and $1,156,181,470.00 over 1-week. The net expense ratio of 0.15% is also very reasonable.
iShares MSCI Japan ETF (EWJ)
The iShares MSCI Japan ETF EWJ is our next Top Short for the week. The ETF gives investors easy exposure to the Japanese equity market through a comprehensive index composed of large and mid-sized Japanese companies. The ETF is smaller-sized with $12,182,829,901.50 AUM. The ETF has also seen consistent fund flows with a 90-day fund flow of $1,247,742,495.00, 30-day fund flow of $972,597,720.00, and 1-week fund flow of $773,190,630.00. The ETF’s net expense ratio of 0.49% is very expensive and the priciest on this list.
Vanguard Intermediate-Term Corporate Bond ETF (VCIT)
The Vanguard Intermediate-Term Corporate Bond ETF VCIT is our final Top Short for the week. This ETF aims to provide investors with a moderate and sustainable level of income streams through investing primarily in intermediate-term, high-quality, investment-grade corporate bonds. With $41,218,213,404.16 AUM, the ETF is relatively mid-sized. The ETF has also seen consistent fund flows with a 90-day fund flow of $2,753,745,806.54, 30-day fund flow of $1,056,791,132.04, and 1-week fund flow of $711,504,415.26. Its net expense ratio of .07% is also very reasonable.
iShares Short-Term Corporate Bond ETF (IGSB)
The Vanguard Short-Term Corporate Bond ETF IGSB is our first unrated ETF. This ETF consists of holdings that are made up of short-term, high-quality, investment-grade, corporate bonds. The ETF has $21,490,199,748.20 AUM, and has seen consistently positive fund flows. The ETF has a 90-day fund flow of $1,856,243,455.00, 30-day fund flow of $1,037,755,325.00, and 1-week fund flow of $711,413,245.00. Its net expense ratio of 0.06 is also quite cheap.
Vanguard Total International Stock ETF (VXUS)
Our other unrated ETF is the Vanguard Total International Stock ETF VXUS . This ETF aims to give investors exposure to companies located outside of the US, and has broad exposure across both developed and emerging non-US equity markets. This ETF is mid-sized with $33,844,807,460.80 AUM. The Vanguard Total International Stock ETF has seen consistent fund flows, with a 90-day fund flow of $7,200,550,747.58, 30-day fund flow of $2,630,665,532.79, and 1-week fund flow of $587,641,090.48. Its net expense ratio of .09% is also decent.
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