Passive Investors Look to Profit From US Stock Rally

Investors are looking to take profits from the recent US stock rally by investing in S&P 500 tracking exchange-traded funds, data from Morningstar showed

Karen Kwok 19 January, 2017 | 5:06PM

Investors are looking to take profits from the recent US stock rally by investing in S&P 500 tracking exchange-traded funds, data from Morningstar showed. In December alone, US large-cap blend equity in Morningstar Categories attracted €936 million, the most popular sector, according to fund flows tracked by Morningstar Direct.

Vanguard S&P 500 ETF (VUSA) was the most popular ETF among Morningstar.co.uk readers in November and December following the outcome of the US Presidential Election, based on website hits. Investors were also seeking out ETFs that track other developed market indices. Vanguard FTSE All-World ETF (VWRL),  Vanguard FTSE 100 ETF (VUKE) and iShares Core FTSE 100 ETF (ISF) topped the most clicked list in December. They were followed by iShares UK Dividend ETF (IUKD) and  S&P US Dividend Aristocrats ETF (UDVD).

Post-Election Stock Market Surge

The interest stems from President-elect Donald Trump’s yet-to-be-confirmed policies which may strengthen the US economy, and in turn drive the US stock market higher.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
ETFS Physical Gold GBP13,507.50 GBX-0.39
iShares Core FTSE 100 ETF GBP Dist598.60 GBX0.71
iShares UK Dividend ETF GBP Dist563.40 GBX1.16
SPDR® S&P US Dividend Aristocrats ETFDis49.45 USD1.75
Vanguard FTSE 100 UCITS ETF26.89 GBP0.88
Vanguard FTSE All-World UCITS ETF GBP70.31 GBP0.64
Vanguard S&P 500 UCITS ETF GBP47.44 GBP0.92

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk

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