ETF Monitors

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Weekly ETF Monitor for week ending 13 July 2018

Global equity markets rose last week despite increasing global trade concerns. The S&P 500 added 1.5% as cyclical stocks returned to favour. BetaShares Nasdaq 100 ETF (NDQ) returned 2.5% for the week. Asia and emerging markets advanced; Japan's Nikkei 225 gained 3.7% and China's Shanghai Composite rose 3.1%, its first weekly gain in eight weeks. ITW, CETF and EMKT were all amongst the top performing ETFs for the week. Domestically the S&P/ASX 200 dropped 0.1% as utilities, energy and financial stocks traded lower. Commodity-related funds (QAG, MNRS and GDX) were amongst the poorest performers for the week.

The U.S. dollar strengthened, gaining 1.7% against the yen and 0.5% against the euro. Pound sterling declined on heightened Brexit concerns. The Australian dollar ended the week marginally lower at US74.24c. The Chinese yuan declined for the fifth straight week.

Commodities more impacted by the global trade uncertainty than equities with WTI Crude declining 3.8% and the broad Bloomberg Commodity Index dropping 2.8%. Gold retreated by 0.9% and other precious metals also declined.

The Australian ETF market saw inflows of $95m into and outflows of $11m from domestically domiciled funds last week. The largest inflows were into Platinum's active equity ETFs (PIXX and PAXX). The bulk of outflows were from a range of domestic equity funds (HVST, QFN and GEAR).