November has been a good month for the U.S. stock market. Hopes of smaller interest rate hikes from December, thanks to a slight decline in inflation, renewed investors’ risk-on trading. However, renewed COVID-19 outbreaks in China and the resultant lockdowns as well as a weakening global growth outlook, continued to weigh on sentiments.
Additionally, the holiday season started on a strong note despite concerns about inflation and higher prices. Consumers spent a record $9.12 billion, up 2.3% year over year, on online shopping during Black Friday this year, according to Adobe.
Holiday spending is expected to be healthy despite inflationary challenges, with retail sales likely to grow 6-8% from the 2021 level during November and December to $942.6-$960.4 billion, per the National Retail Federation. Holiday online sales are forecast to increase 10-12% to $262.8-$267.6 billion, up from $238.9 billion in 2021.
Overall, the S&P 500, the Dow Jones, the Nasdaq and the Russell 2000 gained 8.5%, 7.6%, 9% and 5.5%, respectively, past month.
Nasdaq ETF QQQ Tops the Chart
Invesco QQQ Trust QQQ hauled in about $4.51 billion in assets.As rates dived a bit in November on prospects of lower rate hike trail from here, high-growth sectors benefited in November. Tech-heavy ETF like QQQ performs better in a falling rate environment.
Junk Bond ETFs Win
iShares iBoxx USD High Yield Corporate Bond ETF HYG has fetched about $4.37 billion in assets. As risk-on sentiments returned in the market, investors started betting big on corporate bond ETFs. Vanguard Short-Term Corporate Bond ETF (VCSH) amassed about $2.33 billion in assetsin the month.
Tax-Exempt Bonds Win Too
Vanguard Tax-Exempt Bond ETF VTEB and iShares National Muni Bond ETF (MUB) too garnered about $2.03 billion and $1.29 billion in assets, respectively.
High-Dividend Yielding ETFs Beat Simple Dividend Growers
Schwab U.S. Dividend Equity ETF SCHD amassed about $1.56 billion in assets. The fund the tracks the performance of high dividend yielding stocks issued by U.S. companies that have a record of consistently paying dividends, selected for fundamental strength relative to their peers, based on financial ratios. The fund yields 3.14% annually and charges 6 bps in fees.
On the other hand,SPDR S&P Dividend ETF SDY lost about $1.54 billion in assets. The fund bet on stocks that have been consistently increasing dividends every year for at least 20 consecutive years. The fund SDY yields 2.49% annually and charges 35 bps in fees.
Value ETFs Fell Out of Favor
As rates started falling,Vanguard Value ETF VTV lost about $4.15 billion in assets.This is because of the fact that value stocks underperform in a low-rate environment. iShares Russell 1000 Value ETF IWD witnessed about $750.1 million in assets gushing out of the fund in the month.
Short-Term U.S. Treasury ETFs Lost Assets
iShares Short Treasury Bond ETF SHV, iShares 1-3 Year Treasury Bond ETF SHY and PIMCO Enhanced Short Maturity Active ETF (MINT) lost about $4.27 billion, $781.0 million and $703.0 million in assets, respectively, in the month. As the Fed offered cues of slowing its rate hike pace, investors turned their faces away from short-term treasury bonds. Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) too lost about $845.7 million in assets as inflation cooled a bit.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Invesco QQQ (QQQ): ETF Research Reports
iShares iBoxx High Yield Corporate Bond ETF (HYG): ETF Research Reports
SPDR S&P Dividend ETF (SDY): ETF Research Reports
Vanguard Value ETF (VTV): ETF Research Reports
iShares Short Treasury Bond ETF (SHV): ETF Research Reports
iShares 13 Year Treasury Bond ETF (SHY): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
Vanguard TaxExempt Bond ETF (VTEB): ETF Research Reports
Schwab U.S. Dividend Equity ETF (SCHD): ETF Research Reports
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Image and article originally from www.nasdaq.com. Read the original article here.