Fund flows are an important indicator for identifying the most promising exchange-traded funds (ETFs). By examining this metric, investors can gain insight into market trends and identify the best ETFs to buy right now.
Stay Ahead of the Market:
- Discover outperforming stocks and invest smarter with Top Smart Score Stocks
- Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener
Fund flows reflect the net movement of money into or out of an ETF over a specific period, offering a glimpse into investor sentiment. When demand for an ETF increases, new shares are created, resulting in inflows and boosting assets under management (AUM). On the other hand, when investors sell shares, they are redeemed, leading to outflows and reducing AUM. The net fund flow, calculated as the difference between inflows and outflows, highlights an ETF’s popularity and potential performance.
With this understanding in mind, the TipRanks ETF Screener becomes a powerful tool to uncover top ETFs driven by significant fund flow activity, making it easier to spot high-potential investments.
SPDR Portfolio Developed World ex-US ETF (SPDW)
The SPDR Portfolio Developed World ex-US ETF (SPDW) tracks the performance of a market-cap-weighted index of developed stocks located outside of the United States. The ETF has $21.2 billion in AUM, fund flows of $756.5 million and an expense ratio of 0.03%.
Over the past year, SPDW has increased by more than 5%. Analysts remain cautiously optimistic about SPDW stock, with a Moderate Buy consensus rating based on 1,091 Buys, 1,178 Holds, and 96 Sells. The average SPDW price target of $41.54 implies an upside potential of 22% from current levels.
Direxion Daily TSLA Bull 1.5X Shares ETF (TSLL)
The Direxion Daily TSLA Bull 1.5X Shares ETF (TSLL) offers twice the leveraged exposure to the daily price movement of Tesla (TSLA) stock. The ETF has $4.8 billion in AUM, fund flows of $378.2 million, and an expense ratio of 0.96%. Over the past year, TSLL has surged by more than 100%.
Vanguard Total Stock Market ETF (VTI)
The Vanguard Total Stock Market ETF (VTI) fund seeks to track a market-cap-weighted portfolio that provides total market exposure to the U.S. equity space. The ETF has $460.5 billion in AUM, fund flows of $341.2 million, and an expense ratio of 0.03%.
Over the past year, VTI has surged by more than 20%. Analysts remain cautiously optimistic about VTI stock, with a Moderate Buy consensus rating based on 2306 Buys, 1221 Holds and 81 Sells. The average VTI price target of $337.62 implies an upside potential of 17.1% from current levels.
Key Takeaway
A closer look at fund flows reveals valuable insights into investor sentiment and market dynamics. The higher fund flows in the TSLL ETF highlight growing interest in TSLA stock, signaling confidence in its future performance. Furthermore, the SPDW and VTI ETFs have strong fund flow activity, highlighting their appeal among investors.
