Fund flows play a pivotal role in identifying the most promising exchange-traded funds (ETFs) for investors. By analyzing this essential metric, we can uncover the best three ETFs to buy right now. Essentially, fund flows measure the net movement of money into or out of an ETF over a given period. This process relies on the creation and redemption of ETF shares, offering a unique window into market trends and investor sentiment.
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When demand for an ETF rises, new shares are created, resulting in inflows and boosting the fund’s assets under management (AUM). Conversely, when investors sell ETF shares, they are redeemed, leading to outflows and reducing the AUM. The net fund flow—defined as the difference between inflows and outflows—offers a clear picture of an ETF’s popularity and potential performance.
With this understanding in mind, we turn to the TipRanks ETF Screener to identify the top ETFs that stand out based on fund flow activity.
J.P. Morgan Nasdaq Equity Premium Income ETF (JEPQ)
The J.P. Morgan Nasdaq Equity Premium Income ETF (JEPQ) is an actively managed ETF of U.S. large-cap companies from the Nasdaq-100 Index. The ETF has $21.06 billion in AUM with an expense ratio of 0.35% and fund flows of $158.76 million. Over the past year, JEPQ has surged by more than 20%. Analysts remain cautiously optimistic about JEPQ stock, with a Moderate Buy consensus rating based on 83 Buys and nine Holds. The average JEPQ price target of $64.55 implies an upside potential of 14.7% from current levels.
iShares Russell 1000 Growth ETF (IWF)
This ETF offers exposure to large-cap companies within the growth sector of the U.S. market and is linked to the Russell 1000 Growth Index. The ETF has $107.4 billion in AUM, fund flows of $141.8 million and an expense ratio of 0.19%. Over the past year, IWF has surged by more than 30%. Analysts remain bullish about IWF stock, with a Strong Buy consensus rating based on 322 Buys, 70 Holds and six Sells. The average IWF price target of $455.14 implies an upside potential of 13.6% from current levels.
Direxion Daily TSLA Bull 1.5X Shares ETF (TSLL)
This ETF offers twice the leveraged exposure to the daily price movement of Tesla (TSLA) stock. The ETF has $5.1 billion in AUM, fund flows of $131.9 million, and an expense ratio of 0.96%. Over the past year, TSLL has surged by more than 80%.
Key Takeaway
The higher fund flows in the TSLL ETF indicate increased investor interest in TSLA stock. Furthermore, based on this metric, top choices like the JEPQ and IWM emerge as compelling investment opportunities, each with robust fund flow activity and promising growth potential.
