Fund flows are a crucial indicator for identifying the most promising exchange-traded funds (ETFs). By evaluating this metric, investors can gain insight into market trends and identify the best ETFs to buy right now.
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Fund flows represent the net movement of money into or out of an ETF over a given period, offering valuable insight into investor sentiment. When demand for an ETF rises, new shares are created, resulting in inflows that boost the fund’s assets under management (AUM). Conversely, when shares are sold, they are redeemed, leading to outflows and reducing AUM. The net fund flow, derived from the difference between inflows and outflows, highlights an ETF’s popularity and potential for performance.
With this perspective, the TipRanks ETF Screener emerges as a powerful tool for investors. By focusing on ETFs with significant fund flow activity, the tool helps identify high-potential investment opportunities.
Invesco NASDAQ 100 ETF (QQQM)
The Invesco NASDAQ 100 ETF (QQQM) is passively managed and tracks a modified-market-cap weighted narrow index of 100 NASDAQ-listed stocks, excluding financials. The ETF has $40.3 billion in AUM, fund flows of $1.6 billion and an expense ratio of 0.15%.
Over the past year, QQQM has increased by more than 20%. Analysts remain cautiously optimistic about QQQM stock, with a Moderate Buy consensus rating based on 88 Buys, 14 Holds, and one Sell. The average QQQM price target of $242.38 implies an upside potential of 14.8% from current levels.
FT Cboe Vest U.S. Equity Buffer ETF – January (FJAN)
FT Cboe Vest U.S. Equity Buffer ETF – January (FJAN) aims for specific buffered losses and capped gains on the SPDR S&P 500 ETF Trust over a specific holdings period. The actively managed fund holds options and collateral. The ETF has $1.4 billion in AUM, fund flows of $625.2 million, and an expense ratio of 0.85%. Over the past year, FJAN has increased by more than 10%.
iShares Core S&P 500 ETF (IVV)
The iShares Core S&P 500 ETF (IVV) tracks a market cap-weighted index of US large- and mid-cap stocks selected by the S&P Committee. The ETF has $582.5 billion in AUM, fund flows of $292.5 million and an expense ratio of 0.03%.
Over the past year, IVV has increased by more than 20%. Analysts remain cautiously optimistic about IVV stock, with a Moderate Buy consensus rating based on 405 Buys, 92 Holds, and seven Sells. The average IVV price target of $678.01 implies an upside potential of 14% from current levels.
Key Takeaway
Fund flows offer insights into investor sentiment and market trends. Rising flows in the QQQM and IVV ETF reflect growing confidence in large and mid-cap stocks, while strong activity in FJAN underscores their investor appeal.
