ETF Monitors

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Weekly ETF Monitor for week ending 1 April 2022

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This week's highlights

  • Biotech, India and China were the top performing international segments last week. Biotech has had one of its worst 12-month periods ever, meaning last week offered a small respite. While India and China have locked in cheap oil and gas from Russia, ignoring NATO sanctions, which has supported their economies.

  • Commodities were the poorest performing funds, with the BetaShares Crude Oil Index ETF (OOO), ETFS Physical Palladium (ETPMPD) and ETFS Physical Silver (ETPMAG), the bottom three. The oil price has fallen as the U.S. releases reserves, denting OOO. While palladium has fallen as it is exempt from Russian sanctions, meaning there is no supply crisis. (Russia produces 40% of global palladium).

  • Total inflows for the week were $371 million. Defensive ETFs took an unusually large chunk of these, with half of the top 10 inflow winners investing in bonds (CRED, HBRD, AGVT), gold (GOLD), or shorting the market (BBOZ). The flows suggested that investors do not fully trust the stock market rally.

  • There were $133 in outflows. Magellan was given some respite last week – failing to appear in the bottom 10. However, the Magellan Global Fund has seen $740M in outflows year to date. Unusually, the ETFS-NAM India Nifty 50 ETF (NDIA) appeared in the top 10 outflows, despite being one of the best performing funds for the week.

  • Trading volumes were highest in core Australian equities ETFs, with STW, VAS, IOZ and A200 all cutting ahead of the pack. The only unusual top traded fund was the BBUS hedge fund, which bets against the U.S. share market.

  • ETFS S&P Biotech ETF (CURE) was the top-performing fund last week, returning 4.5%. CURE offers investors exposure to U.S. healthcare biotechnology companies engaged in the research, development and manufacturing of products based on genetic analysis and genetic engineering.