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Investors Rotate Into Bonds And Gold After A Historic Month For Stocks

An eventful financial week had an impact on ETF fund flows. The Fed’s pledge to keep rates near zero has made bonds attractive, and an iShares high yield bond fund (HYG) gained nearly $1.6 billion in new assets. Invesco QQQ Trust has Amazon, Apple, Alphabet and Facebook among its top 10 holdings. These companies all reported last week, contributing to the fund’s inflow of over $1 billion. SPDR Gold Shares also brought in over $1 billion in assets. Last, iShares Russell 2000 ETF was popular with investors, offsetting some of its massive outflows over the past three months.

Key Takeaways:

  • Higher yield bond ETFs (such as HYG) experienced large inflows thanks to near zero Fed rates.
  • Invesco QQQ Trust – which holds lots of Apple, Amazon, Alphabet and Facebook – was popular among investors.
  • Investors also added over $1 billion to SPDR Gold Shares in the last week.

“As the rally in stocks continued, albeit with last week providing plenty of volatility, ETF fund flows had some big surprises.”

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