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Weekly ETF Monitor for week ending 19 October 2018

This week's highlights

  • Global equity markets stabilised last week. The S&P 500 ended the week flat, while the EURO STOXX 50 rose 0.5% and the Nikkei 225 fell 0.7%. Defensive sectors outperformed, with ETFS S&P 500 High Yield Low Volatility ETF (ZYUS) being amongst the top performers. Global infrastructure funds were the top performers with MICH and GLIN returning 2.2% for the week. Domestically, the S&P/ASX 200 ended the week 0.7% higher. Real estate was the top performing domestic sector, with MVA, SLF and VAP all amongst the week's top ETFs.

  • The Australian dollar ended the week slightly higher at US71.19c, while the U.S. dollar gained against both the euro and yen. In fixed income, U.S. 10-year Treasury yields rose 3bps and Italian government bonds sold off sharply as the budget conflict between the populist Italian government and the EU escalated.

  • Gold gained 0.7% to US$1,216/ounce, its third consecutive weekly gain. WTI crude fell 3.1% to US$69.12/bbl.

  • The Australian ETF market saw inflows of $179m into and outflows of $77m from domestically domiciled funds last week. The largest inflows were into domestic equity ETFs (A200, IOZ, MVW and STW). The largest outflows were from bearish Australian equities (BBOZ) and U.S equity and cash ETFs (IJR, USD and NDQ).