ETF Monitors


Weekly ETF Monitor for week ending 12 October 2018


This week's highlights

  • The global equity selloff picked-up pace last week as U.S. 10-year Treasury yields rose above 3.2% and U.S.-China trade conflict continued to concern investors. The S&P/ASX 200 fell 4.7%, its biggest weekly decline since early 2016. The S&P 500 fell 4.1%, led lower by the cyclical technology, financial and industrial sectors. The EURO STOXX 50 fell 4.5%, while the Nikkei 225 dropped 4.6%. Bearish equity funds (BBOZ, BBUS and BEAR) were the top performers for the week, along with gold mining ETFs, with MNRS and GDX returning 6.2% and 5.2% respectively. Global robotics and AI funds (ROBO and RBTZ) were amongst the poorest performers.

  • U.S. 10-year Treasury yields hit a new 7-year high above 3.25% before pulling back to end the week at 3.16%. The U.S. dollar pulled-back. The Australian dollar ended the week at US71.14c.

  • Gold rallied 1.1% to US$1,217/ounce on safe-haven buying and is now more than 4.2% above its August lows. WTI crude fell 4.0% to US$71.34/bbl.

  • The Australian ETF market saw inflows of $215m into and outflows of $47m from domestically domiciled funds last week. The largest inflows were into domestic cash and equity ETFs (AAA, STW and IOZ). The largest outflows were from U.S dollar and U.S. equity ETFs (USD, IVV and IJR).