S&P 500 ETFs Hauled In Assets Last Month

December 04, 2013

Big S&P 500 ETFs were huge winners in the asset-gathering game in November.

With the S&P 500 reaching new highs last month, it's no surprise that a quadruplet of S&P 500-related ETFs were some of the biggest asset gatherers in November as well. And if newly appointed Federal Reserve Chairman Janet Yellen keeps up the current pace of quantitative easing, the banks will stay open for these ETFs for the foreseeable future.

Specifically, the iShares Core S&P 500 ETF (IVV | A-98), SPDR S&P 500 ETF (SPY | A-98), ProShares Ultra S&P 500 ETF (SSO) and the Vanguard S&P 500 (VOO | A-96) took in $3.02 billion, $1.62 billion, $1.46 billion and $698.8 million, respectively last month, according to data compiled by IndexUniverse.

The S&P 500 has surged this year to the tune of 25.9 percent year-to-date, hitting a record 1,802.37 on Nov. 18 on the strength of a steadily recovering economy and the Federal Reserve's bond buying program that have held down borrowing costs for companies.

In turn, IVV, SPY, SSO and VOO are up 24.7 percent, 24.6 percent, 52.1 percent and 24.8 percent year-to-date, respectively. It should be noted that SSO provides a 2x leveraged exposure to the S&P 500.

The table below shows those returns, with the similar returns of SPY, IVV and VOO represented in black, while the double-exposure SSO's gains appear in red.

Chart courtesy of StockCharts.com

Morgan Stanley chief U.S. equity strategist Adam Parker and John Stoltzfus, chief investment strategist at Oppenheimer both expect the S&P to eclipse its current record of 1800 reached last month and rise to 2014 in 2014.

"We continue to believe that US economic growth has in effect been 'primed' by the Federal Reserve's Quantitative Easing (QE) programs," wrote Stoltzfus.

"Recent improvements in the tone of US economic data suggest to us that prospects are good for investors to see a continuation of the economic recovery that could drive earnings higher in the year ahead."


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