ETF Monitors

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Weekly ETF Monitor for week ending 29 January 2021

This week's highlights

Major equity markets sold off last week on valuation concerns and Reddit-inspired short squeeze mania. Top performing equity funds were all short plays; SNAS, BBUS, BBOZ and BEAR. At the other end, Australian resources ETFs (MVR, QRE and OZR) were the poorest performers amongst non-leveraged funds. Battery technology (ACDC), energy (FUEL) and Asia tech (ASIA) were also all in negative territory.

Precious metals had a strong week. Silver (ETPMAG) was the top performer across the market following Reddit-led buying across physical and ETF markets globally. Gold (GOLD), platinum (ETPMPT) and diversified precious metals basket (ETPMPM) funds were all amongst the week’s top performers. Leveraged US dollar fund YANK and pound sterling fund POU also posted strong weeks.

Total reported flows into domestically domiciled ETFs were $680m, while outflows totalled $21m. Domestic equity fund VAS saw the biggest inflows, followed by a range of global equity funds including VGS, VDHG, VGAD and VGE. Cash fund AAA saw the bulk of the week’s outflows.

VAS was the most traded fund for the week, followed by STW and BBOZ. VGS saw above average volumes.

ETFS Physical Silver (ETPMAG) was the week’s top-performing fund, returning 8.9%. ETPMAG aims to track movements in the spot price of silver in Australian dollars by providing investors with an entitlement to physical silver bullion. The bullion is vaulted with JP Morgan in London and is independently audited twice annually.