3 ETFs That Investors Are Plowing Money Into This Year

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The S&P 500 and Nasdaq 100 haven’t been hit this hard in quite a while. With the S&P 500 and Nasdaq 100 correcting, self-guided investors with too much cash may wish to start doing some buying. Indeed, it’s tough to keep up with all the stocks on your radar as everything flies south. If you’re experiencing a bit of a “freeze” response, perhaps keeping it simple and picking up a low-cost index ETF can make a lot of sense. Indeed, sometimes simpler is better when the going gets rough.

Of course, tariff uncertainty is the primary reason the stock market is in its first correction in more than a year. And as the high-multiple stocks plunge harder, many of the most intriguing growth names now look to be in a fair spot.

Depending on where you look, some such battered stocks may prove to be oversold and actually cheap relative to their long-term growth prospects. Indeed, the Nasdaq 100 may be off 12%, but if you look underneath the hood, many of the top holdings within the index (think the Mag Seven names) are off by way more as multiples contract and tariff fears mount.

As Warren Buffett said, tariffs are “a tax on goods,” and “the tooth fairy doesn’t pay ’em.”

Arguably, investors have already paid the price. But the real question is whether the correction is an overreaction, given the Trump administration can walk back on tariffs at any time. In this piece, we’ll check out three ETFs that are experiencing a healthy amount of inflows so far this year. They could prove great buys as market volatility stays elevated over the coming weeks.

SPDR S&P 500 ETF Trust

The SPDR S&P ETF Trust (NYSEARCA:SPY) experienced significant inflows in February. Undoubtedly, as one of the go-to ways to bet on the S&P 500, it should be no surprise to see the name at the top of the list in any given month, especially when valuations come in.

With the SPY down considerably since March began, my guess is that dip-buyers could continue to pile in with the hope that a new trade deal can put an end to the non-stop tariff talk. Furthermore, as more economic data comes out, perhaps the latest dip in the SPY is more garden variety than anything out of the ordinary.

Invesco QQQ Trust

For the brave investors who still believe in the Mag Seven and other high-tech names, the Inveso QQQ Trust (NASDAQ:QQQ) may be the more opportunistic buy on the dip. Shares of the QQQ are down around 12%, around 4% more than the S&P 500, thanks to the unravelling of the Magnificent Seven trade.

Though the SPY saw more inflows than the QQQ, I do think that those seeking to top up their AI exposure may wish to go for the QQQ over the SPY. As always, though, the QQQ is a rougher ride and more short-term pain could be in the cards if the tariff tremors concentrate pain in the tech scene, causing bubbles within the AI space to correct.

SPDR Gold Shares

Gold has glittered amid the latest correction in the stock market. While the precious metal has been hot for well over a year now, it should come as no surprise that investors are continuing to flock to the asset in times of heightened volatility.

The SPDR Gold Shares (NYSEARCA:GLD), the heavyweight champ of low-cost gold ETFs, experienced a good amount of inflows in February. Sure, the GLD is a hair within all-time highs, but given how rattled investors are, can you really blame them for paying a hefty price on the safe-haven asset?

Given gold’s relative stability versus stocks and cryptocurrencies, perhaps it is still a golden opportunity to buy gold shares if you’re underexposed. Of course, if tariffs lift and things become more certain, gold prices could be hit with a correction of their own.

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