ETF Monitors

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Weekly ETF Monitor for week ending 29 April 2022

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This week's highlights

  • The top performing ETFs were focused on China—ASIA, IZZ, IAA. Chinese stocks rallied because the People’s Bank of China (PBoC) cut the reserve rate, thanks to the Shanghai lockdown and lower PMI data. Lower interest rates support stock prices.

  • The poorest performers were the same roll call as in previous weeks: the ETFS S&P Biotech ETF (CURE) and the BetaShares Crypto Innovators ETF (CRYP).

  • CURE is now down 42% over the past 12 months, making it the poorest performing ETF over that period. CURE’s performance reflects the downturn in the biotech industry, which is now in its most protracted bear market ever. However, in the gloom, we are seeing green shoots, with some hedge funds taking the selloff as a chance to buy.

  • The ETF industry clocked in A$223 million in traceable inflows for the week—a fat haul considering markets are falling. However, this comes with the caveat that Vanguard, the largest ETF provider, only publishes its flow data once a month and is therefore excluded this week. Meaning the real inflow number could be higher.

  • There were $115 million in traceable outflows. This number is likely accurate as Vanguard ETF investors tend to buy and hold. Outflows were concentrated in BBUS and BBOZ, which bet against the US and Australian share markets, and may owe to investors taking profits.

  • Technology-focused ETFs also witnessed inflows despite the sell-off in US tech shares, suggesting investors were buying the dip.