ETF Monitors

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Weekly ETF Monitor for week ending 10 June 2022

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This week's highlights

  • Chinese ETFs were the top performers last week, with five ETFs offering exposure to the colossus economy – ASIA, IZZ, CETF, CNEW & VAE – making it into the top 10. This is due to increased investor confidence in the country’s economic prospects with accelerated resumption of work.

  • Perhaps surprisingly, Australian bank-heavy ETFs were the bottom performers last week, with MVB, QFN, OZF falling in the bottom 10. While rising interest rates typically improve bank profitability, Aussie banks are heavily exposed to residential property and mortgages, which are trending downwards.

  • Property ETFs were among the bottom performers again, names include SLF, MVA and VAP. Again, interest rates are likely to blame as increased borrowing costs negatively impact the property market.

  • Our LNAS and SNAS were at the extreme best and worst performers. SNAS has been the primary beneficiary of cratering US tech shares, while LNAS has been the primary victim.

  • There was $266 million in recorded inflows. MVR – an equal weight resources sector ETF – accounted for 20%, or roughly $58 million of these.

  • The industry recorded $264 million in weekly outflows. iShares’ S&P/ASX200 IOZ made up about 60% of that with its $164 million outflow.

  • A couple of heavily traded ETFs were VAS and IOZ – as is standard. AAA made an appearance in the top 10 most traded, partly because of the Reserve Bank of Australia’s interest rate hike.