The Most Popular ETF Plays of the First Quarter

Investors may have also been riding the momentum in these overseas markets after the rally in U.S. equities stalled in the later weeks of the first quarter. Year-to-date, IEMG increased 14.0%, VEA returned 8.5% and IEFA gained 8.5%, whereas the S&P 500 index was up 6.0%.

Nevertheless, U.S. equities remained a popular, notably the cheaper ETF options. For instance, the S&P 500 Index still remained a go-to play, with the iShares Core S&P 500 ETF (NYSEArca: IVV) bringing in $6.0 billion in net inflows, followed by SPDR S&P 500 ETF (NYSEArca: SPY) with $5.1 billion and Vanguard 500 Index (NYSEArca: VOO) with $4.0 billion.

The broad Vanguard Total Stock Market Index ETF (NYSEArca: VTI) saw $2.8 billion in net inflows as well.

Additionally, the iShares Core S&P Small-Cap ETF (NYSEArca: IJR) saw $3.3 billion in net inflows and iShares Core S&P Mid-Cap ETF (NYSEArca: IJH) brought in $2.9 billion. The heavy interest in these “Core” positions may be attributed to their cheap management fees – IJR and IJH both come with a 0.07% expense ratio. In contrast, the popular small-cap play, iShares Russell 2000 ETF (NYSEArca: IWM), which tracks the Russell 2000 benchmark, has a 0.20% expense ratio.

Among the most popular plays of the quarter, the iShares iBoxx $ Investment Grade Corporate Bond ETF (NYESArca: LQD) was the only fixed-income option among the top ten. While LQD’s and the broader bond market’s performances were lackluster over the first quarter, especially in the face of a rising rate environment, BlackRock’s own strategists may have been pushing the investment-grade corporate bond trade to its readers and clients, citing the higher income provided and favoring the investment-grade credit market as a way to cushion against rising interest rates.