ETF Monitors


Weekly ETF Monitor for week ending 13 March 2020


This week's highlights

  • COVID-19 and Saudi Arabia’s aggressive moves to ramp up oil supply saw for one of the most volatile weeks ever across financial markets. Bearish ETFs (BBOZ, BBUS and BEAR) were the top performing funds, while foreign currency funds (YANK, ZUSD, USD, EEU and POU) also saw strong gains for the week. Amongst long-only equity funds, only China ETFs (CETF and IZZ) saw green.

  • On the negative side, there were many. Energy companies were hit hardest – FUEL fell 27% for the week. Gold miners were also hit hard, despite the metal trading flat in AUD terms. European equity funds (HEUR) were also amongst the biggest decliners.

  • Precious metals were not immune. Gold dropped 7% is US dollar terms, but held its ground in AUD. Palladium gave up most of its recent gains, dropping nearly 30%. Oil ETF OOO fell 23% for the week. The Australian dollar fell below US62c for the first time since 2008.

  • Total flows into domestically domiciled ETFs were $460m, while outflows totalled $468m. Domestic equity funds dominated flows with A200 and STW seeing the largest inflows and IOZ seeing the largest outflows. GOLD, QAU and USD saw strong haven flows, while crude oil fund OOO saw speculative inflows following the massive price drop.

  • Bearish domestic fund BBOZ was the most traded fund last week, followed by broad-based funds VAS, STW and IOZ. Other leveraged funds, BBUS and GEAR, saw above average trading.

  • ETFS Enhanced USD Cash ETF (ZUSD) returned 7.8% for the week, benefiting from the strengthening US dollar and the stability of cash amidst the turmoil in more volatile asset classes.