Fund flows are important in identifying the best exchange-traded funds (ETFs) for investors to consider. Using this metric, let’s look at the top three ETFs to buy. Fund flows reveal the net movement of money into or out of an ETF over a given period, offering a glimpse into investor sentiment and broader market dynamics. These flows are calculated by tracking the creation and redemption of ETF shares.
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When investors buy ETF shares, new shares are created, leading to inflows and boosting the fund’s assets under management (AUM). Conversely, outflows occur when shares are redeemed due to sales, reducing the AUM. The net fund flow, which reflects the difference between shares created and redeemed, serves as a vital indicator of an ETF’s popularity and performance.
With that in mind, we turn to the TipRanks ETF Screener to uncover the top three ETFs to buy now, based on fund flows.”
iShares Russell 2000 ETF (IWM)
The iShares Russell 2000 ETF (IWM) offers investors exposure to the Russell 2000 Index, a widely followed measure of small-cap U.S. stocks. The ETF has seen fund flows of $804 million and has $82.2 billion in assets under management (AUM) with an expense ratio of 0.2%. Over the past year, the IWM ETF has soared by more than 20%. Analysts remain cautiously optimistic about IWM stock, with a Moderate Buy consensus rating based on 1,263 Buys, 641 Holds, and 46 Sells. The average IWM price target of $283.33 implies an upside potential of 20.7% from current levels.
Vanguard S&P 500 ETF (VOO)
The Vanguard S&P 500 ETF (VOO) tracks the S&P 500 Index, which includes some of the U.S.’s largest companies. The ETF has seen fund flows of $572.8 million and has $585.5 billion in assets under management (AUM) with an expense ratio of 0.03%. Over the past year, the VOO ETF has soared by more than 25%. Analysts remain cautiously optimistic about VOO stock, with a Moderate Buy consensus rating based on 401 Buys, 97 Holds, and eight Sells. The average VOO price target of $620.34 implies an upside potential of 11.6% from current levels.
Vanguard Dividend Appreciation ETF (VIG)
The Vanguard Dividend Appreciation ETF (VIG) tracks the NASDAQ US Dividend Achievers Select Index, focusing on dividend-paying large-cap U.S. companies with growth potential. The ETF has seen fund flows of $377.1 million and has $88.7 billion in assets under management (AUM) with an expense ratio of 0.06%. Over the past year, the VIG ETF has soared by more than 20%. Analysts remain cautiously optimistic about VIG stock, with a Moderate Buy consensus rating based on 229 Buys, 101 Holds, and 10 Sells. The average VIG price target of $222.55 implies an upside potential of 11% from current levels.
