U.S. Equity ETF Demand Surged Last Week Despite Market Selloff

Summary of Key Points Core Viewpoint - The recent influx of capital into ETFs indicates strong investor interest, particularly in U.S. equity ETFs, amidst broader market challenges including a weaker jobs report and new tariffs announced by President Trump [1][2][3][4]. ETF Inflows - ETFs across various categories attracted a total of $25 billion in capital last week, with U.S. equity ETFs leading at $16.3 billion, followed by U.S. fixed income ETFs at $4.3 billion and international equity ETFs at $3.5 billion [1]. Economic Indicators - The U.S. economy added only 73,000 jobs in July, significantly below the expected 104,000, with prior months' job gains revised down by 258,000. The unemployment rate increased to 4.2%, and manufacturing activity contracted, raising concerns about a potential economic slowdown [3]. Tariff Announcements - President Trump announced new tariffs affecting imports from approximately 70 countries, raising the U.S. effective tariff rate to 18%, the highest since the 1930s, which has caused investor anxiety regarding trade disruptions [4]. ETF Details - iShares Core S&P 500 ETF (IVV): Attracted $4.7 billion, holds 503 stocks, charges 3 bps in fees, AUM of $633 billion, and has a Zacks ETF Rank 1 [6]. - SPDR S&P 500 ETF Trust (SPY): Also attracted $4.7 billion, holds 503 stocks, charges 9 bps in fees, AUM of $639.7 billion, and has a Zacks ETF Rank 2 [7]. - Vanguard S&P 500 ETF (VOO): Gained $1.8 billion, holds 505 stocks, charges 3 bps in fees, AUM of $700.4 billion, and has a Zacks ETF Rank 1 [8]. - Invesco QQQ Trust (QQQ): Raked in $1.1 billion, tracks the Nasdaq 100 Index, AUM of $354 billion, and charges 20 bps in fees [9]. - ARK Innovation ETF (ARKK): Gathered $913.6 million, focuses on innovative companies, AUM of $7 billion, and charges 75 bps in fees [11].