ETF Monitors


Weekly ETF Monitor for week ending 26 July 2019


This week's highlights

  • Global equities advanced last week as the S&P 500 and Nasdaq 100 hit new all-time highs and the S&P/ASX 200 came close to doing likewise. Cyclical stocks outperformed, with ETFS Morningstar Global Technology ETF (TECH) topping the ETF performance charts. U.S. mid- and small-cap funds (IJH and IJR) and other tech-heavy funds including NDQ, HACK and ROBO followed. Global equity strategy funds including MGE and MOAT also posted strong weeks.

  • Precious metal prices continued to rise ahead of the anticipated Fed rate cut this week. Platinum and silver were the biggest movers. Gold mining ETFs (MNRS and GDX) retreated.

  • The Australian dollar fell below US 70c, driving unhedged ETFs higher. AUDS was the week’s poorest performing ETF, while YANK was amongst the top performers.

  • Total flows into domestically domiciled ETFs were $307m, while outflows totalled $173m. The biggest inflows were into broad based domestic equity funds (A200 and IOZ), cash and fixed income funds (FLOT, QPON and AAA) and gold (GOLD). The largest outflows were from PLUS and STW.

  • AAA was the most traded fund last week, while PLUS, QPON and FLOT all saw above average volumes as cash and fixed income funds dominated volumes.

  • ETFS Morningstar Global Technology ETF (TECH) returned 5.0% for the week and is now up 29.9% year-to-date. Strong earnings from Google and across the semi-conductor industry propelled the sector higher. Morningstar’s moat methodology, which identifies quality companies with high levels of competitive advantage at attractive valuations, is used in TECH’s stock selection process.