Exchange-traded funds (ETFs) witnessed massive net inflows in the week ending May 17, 2024. Investors turned positive on ETFs as they see higher chances of Federal Reserve rate cuts this year following a weak Labor report for April.
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For the week ending May 17, global equity funds saw net inflows of $10.27 billion, of which $5.78 billion net inflows were in U.S. equity funds, as per data from LSEG, as cited by a Reuters report. Let’s see some of the top ETFs with large weekly inflows, as per TipRanks.
#1 JPMorgan Alerian MLP Index ETN Due January 28, 2044 (AMJB)
AMJB tracks a market cap-weighted index of 50 North American energy MLPs (master limited partnerships). Securities are selected based on distributions. AJMB has assets under management (AUM) worth $776.17 million.
AMJB has an ETN (Exchange Traded Notes) structure that is slightly different from the traditional ETFs’ structure. ETNs are more like senior bonds (unsecured debt) issued by an institution.
On May 13, $554.52 million of funds flowed into the AMJB. Moreover, on May 15, another $113.89 million of funds flowed into AMJB, bringing the total flows in the past week to $668.41 million. AMJB witnessed such massive inflows last week because it began a notes exchange program for the old notes with the last date for trading them being May 21, 2024.
#2 Invesco S&P MidCap Momentum ETF (XMMO)
The Invesco S&P MidCap Momentum ETF tracks the S&P Midcap 400 Momentum Index, with at least 90% of the funds invested in the securities with the highest momentum scores.
XMMO’s AUM currently stands at $2.86 billion. XMMO recorded net inflows each day during the past week, with the largest inflow of $181.4 million reported on May 15. On May 14, XMMO’s net inflows stood at $45.8 million, with the total inflows during the last week aggregating $251.5 million.
XMMO has a majority of its holdings in the Industrials sector followed by Information Technology and Consumer Discretionary sectors. As of date, XMMO has 78 holdings, with the top 10 holdings contributing 25.3% of the total portfolio. The top five holdings are Manhattan Associates (MANH), EMCOR Group (EME), Lennox International (LII), Owens Corning (OC), and XPO Logistics (XPO).
Interestingly, XMMO has a Moderate Buy consensus rating based on 58 Buys and 20 Hold ratings. The average Invesco S&P MidCap Momentum ETF price target of $124.57 implies 7.7% upside potential from current levels.
#3 First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index (GRID)
GRID tracks a market-cap-weighted index of global equities in the smart grid and electrical energy infrastructure sector as determined by Clean Edge.
GRID witnessed a net inflow of $83.37 million on May 15, $24 million on May 17, and $11.82 million on May 13, bringing the weekly inflows to $119.19 million. GRID has AUM worth $1.36 billion.
GRID has 103 holdings, with the top 10 contributing 56.94% of the portfolio. Its top five holdings include Eaton Corp. (ETN), Abb Ltd. (ABB), National Grid (GB:NG), Schneider Electric (FR:SU), and Johnson Control (JCI).
GRID also has a Moderate Buy consensus rating on TipRanks based on 54 Buys, 47 Holds, and two Sell ratings. The average First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index price target of $123.79 implies 3.4% upside potential from current levels.
#4 Direxion Daily Small Cap Bear 3x Shares (TZA)
TZA provides three times daily inverse exposure to a market-cap-weighted index of US small-cap companies as defined by the Russell 2000. As of date, TZA has three holdings, mostly invested in cash and government securities, with an AUM of $581.36 million.
Interestingly, TZA experienced a mix of positive and negative flows during the last week. Last week’s net outflows included $85.2 million on May 13, $1.8 million on May 14, and $47.7 million on May 16. In contrast, TZA experienced net inflows of $26.5 million on May 15 and another $158.9 million on May 17. The weekly aggregate was a net inflow of $50.6 million.
#5 JPMorgan Hedged Equity Laddered Overlay ETF (HELO)
HELO is an actively managed fund of U.S. large-cap equity stocks (mirroring the S&P 500 index), with a laddered options overlay (put options on the SPX index) that seeks to provide downside protection while foregoing some of the upside potential. HELO aims for enhanced risk-adjusted return over a full market cycle with lower volatility than traditional equity strategies.
HELO witnessed net inflows of $59.5 million in the past week, including nearly $41 million on May 14, $2.8 million on May 15, and $15.7 million on May 17.
HELO has 172 holdings in its portfolio, with an AUM of $706.53 million. Its top five holdings are the tech giants of Wall Street – Microsoft (MSFT), Apple (AAPL), Nvidia (NVDA), Amazon.com (AMZN), and Meta Platforms (META).
HELO has a Moderate Buy consensus rating based on 153 Buys versus 19 Hold ratings. The average JPMorgan Hedged Equity Laddered Overlay ETF price target of $63.05 implies 10.2% upside potential from current levels.
Ending Thoughts
ETFs are an attractive option to diversify your risk. Investors seeking exposure to ETFs can leverage the TipRanks ETF Screener tool to research and pick ETFs of their choice. They can check the weekly inflows to track the ETFs that are in the spotlight.
