Top ETFs This Week Amid Rising Bond Yields And Fears Of Inflation

Last week, once again, rising bond yields and inflation fears weighed on the markets. Specifically, growth stocks were hit hard, with the Nasdaq
NDAQ
seeing some of its worst sessions in three weeks. However, this week has started off with some stability, and bond yields somewhat retreating. We will see what happens, though, because in the words of CNBC personality Jim Cramer until bond yields start “behaving,” more volatility could occur. Despite those headwinds, the pandemic looks to be easing in the U.S. as our vaccine rollout continues to improve. Based on all of this news pushing and pulling the market, we’ve built a list of trending ETFs for this week. Hopefully, some of these picks can help you diversify your portfolio and potentially mitigate risks. Q.ai’s deep learning algorithms have identified several ETFs to look out for this week based on their fund flows over the last 90-days, 30-days, and 7-days. We have identified one Top Buy, two Attractive, one Neutral, one Unattractive, and four Top Shorts

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Top Buy

Vanguard Small-Cap Growth ETF (VBK)

The lone Top Buy this week is the Vanguard Small-Cap Growth ETF
VBK
. With the volatility growth stocks have shown thanks to rising bond yields, it could be a very strong buying opportunity for this sector- especially for small-caps. The purpose of this ETF is fairly straightforward- to hold and track an index of diversified small-cap growth companies like Plug Power
PLUG
, for example. The ETF is smaller-sized with $16,485,015,515.00 AUM, and has seen consistently positive fund flows. The ETF has a 90-day fund flow of $1,632,926,443.88, 30-day fund flow of $1,349,433,616.56, and 1-week fund flow of $1,207,518,380.13. The ETF is very attractive to own with a cheap net expense ratio of 0.07%.

Attractive

Vanguard Small-Cap ETF (VB)

Our first Attractive ETF for this week is the Vanguard Small-Cap ETF
VB
. This ETF aims to track an index of high-quality and diversified small-cap stocks, and has performed very strongly since November with holdings such as Zebra Technologies Corp
ZBRA
, Etsy Inc, Teradyne Inc
TER
, and HubSpot Inc
HUBS
The ETF is medium sized in terms of AUM with $43,450,661,355.36 AUM. The ETF has also seen positive fund flows with a 90-day fund flow of $4,306,858,677.09, 30-day fund flow of $2,437,966,412.42, and 1-week fund flow of $1,977,707,177.93. The ETF also has a very attractive 0.05% net expense ratio.

Vanguard Extended Market ETF (VXF)

The Vanguard Extended Market ETF
VXF
is our other Attractive ETF this week. The goal of this ETF is to essentially give investors exposure to all domestic stocks outside of the S&P 500. The ETF focuses on holding a basket of stocks from small and midsize companies. The ETF is smaller-sized with $16,005,002,298.36AUM. It has seen consistently positive fund flows, with a 90-day fund flow of $2,116,986,334.26, 30-day fund flow of $2,013,138,602.52, and 1-week fund flow of $1,806,262,554.35. Its net expense ratio of 0.07% is also very attractive.

Neutral

Vanguard Mid-Cap ETF (VO)

The Vanguard Mid-Cap ETF 
VO
 is our only Neutral ETF this week. The ETF aims to track the small-cap Russell 2000 index. With optimism of a reopening economy, and a massive stimulus package that just passed the Senate, the Russell 2000 has surged, and could continue to surge. This ETF as a result, has performed strongly. The ETF is mid-sized with $67,784,833,923.00 AUM. It has seen positive fund flows, with a 90-day fund flow of $6,026,070,300.00, 30-day fund flow of $4,370,277,250.00, and 1-week fund flow of $736,655,430.00. Its net expense ratio of 0.2% is ok.

Unattractive

Vanguard Total Stock Market ETF (VTI)

The Vanguard Total Stock Market ETF
VTI
is our only Unattractive ETF. This ETF aims to track the CRSP US Mid Cap Index, and track the returns of U.S. mid-cap stocks The ETF is medium-sized in terms of AUM with $45,415,023,632.73 AUM. It has seen consistently positive fund flows, with a 90-day fund flow of $3,560,337,899.40, 30-day fund flow of $3,196,184,150.03, and 1-week fund flow of $2,796,713,232.09. Its net expense ratio of 0.04% is also very cheap and reasonable.

Top Short

Vanguard S&P 500 ETF (VOO)

The first Top Short for this week is the Vanguard S&P 500 ETF
VOO
. This ETF aims to mirror the performance of the S&P 500 as closely as possible. With $198,021,270,205.46, it is one of the larger ETFs on this week’s list. Its fund flows have been consistently positive with a 90-day fund flow of $17,928,767,291.28, 30-day fund flow of $4,546,196,161.25, and 1-week fund flow of $2,413,631,120.83. With a net expense ratio of 0.03%, it is also very cheap.

iShares S&P 500 ETF (IVV)

The iShares S&P 500 ETF
IVV
 is our next Top Short ETF this week. This is another ETF that aims to mirror the S&P 500’s performance. With $254,778,120,214.00 AUM, it is another one of the largest ETFs on this week’s list. Its fund flows have been consistently positive with a 90-day fund flow of $2,997,215,085.00, 30-day fund flow of $4,261,041,640.00, and 1-week fund flow of $1,010,066,555.00. With a net expense ratio of 0.03%, it is also very cheap.

Vanguard Dividend Appreciation ETF (VIG)

The next Top Short ETF for this week is the Vanguard Dividend Appreciation ETF
VIG
. This ETF offers investors a convenient way to gain exposure to companies that have shown a consistent track record of growing their dividends year over year. It is a medium-sized ETF in terms of AUM with $54,038,810,899.50 AUM. Its fund flows have been consistently positive, with a 90-day fund flow of $12,573,990,782.45, 30-day fund flow of $12,614,402,434.28, and 1-week fund flow of $12,628,310,728.79. With a net expense ratio of 0.08%, it is also very cheap.

SPDR S&P 500 ETF Trust (SPY)

The final Top Short for this week is yet another S&P 500 tracking ETF — the SPDR S&P 500 ETF Trust
SPY
. This ETF is widely considered the benchmark ETF for tracking the S&P 500 as closely as possible. It is also the largest ETFs in the world in terms of AUM with $339,302,905,911.41 AUM. Its fund flows have been consistent, with a 90-day fund flow of $3,142,352,013.55, 30-day fund flow of $525,641,721.45, and 1-week fund flow of $4,617,555,082.00. With a net expense ratio of 0.094%, it is also very cheap.

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