Vanguard, VanEck, SPDR ETFs Drop Amid Mixed Market Sentiment, Strong Fund Inflows

The Vanguard S&P 500 ETF (VOO) and SPDR S&P 500 ETF Trust (SPY) both experienced declines of around 2.6% last week, despite significant net inflows of $2.08 billion and $4.29 billion respectively, reflecting ongoing investor interest in these broad market ETFs. Key holdings such as Apple, Microsoft, and Nvidia influenced market sentiment, with Apple facing challenges from potential U.S. tariffs on iPhones and competitive pressures in China, leading to a moderate buy consensus amid cautious optimism. Microsoft received a price target increase due to its strong enterprise AI focus, with analysts expecting its AI business to grow significantly by 2028, maintaining a strong buy rating. Nvidia is anticipated to report a 20% earnings per share increase, supported by strategic partnerships and innovation in AI data centers, contributing to analyst optimism and strong buy ratings. Meanwhile, the VanEck Semiconductor ETF (SMH) saw a 3.48% decline but attracted $269.09 million in inflows, supported by positive outlooks on major holdings like Nvidia, Taiwan Semiconductor Manufacturing Company, and Broadcom, all benefiting from strong AI demand and technological advancements. Overall, despite short-term market pressures and geopolitical challenges, investor confidence remains buoyed by growth prospects in technology and AI sectors across these ETFs.