ETF Monitors


Weekly ETF Monitor for week ending 14 July 2017


Global equities rallied last week following Janet Yellen's comments suggesting that the pace of rate normalisation will be more gradual than some had anticipated. The S&P/ASX 200 added 1.1%, the S&P 500 rose 1.4%, the EURO STOXX 50 gained 1.8%, while the MSCI Emerging Markets Index jumped 4.5%. iShares MSCI BRIC ETF (IBK) was the top performing unleveraged equity ETF for the week, returning 2.3% in Australian dollar terms.

The Australian dollar gained over 3% on general US dollar weakness and higher commodity prices. The euro gained 0.6% and the pound added 1.6% against the US dollar. The Japanese yen also strengthened by 1.2%.

Global bonds yields climbed after a better-than-expected US jobs report offered support to the Federal Reserve's plan to raise interest rates, US 10 year Treasury yields up 0.08%. Australian 10 year government bond yields up 0.13%.
Commodities rebounded with WTI crude oil up 5.2% and iron ore up 4.7%. Lower rate expectations also provided positive news for precious metals with gold rising by 1.2% for the week, its best weekly performance in two months.
The Australian ETF market saw inflows of A$84m and outflows of A$67m from domestically domiciled ETFs last week.