ETF Monitors

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Weekly ETF Monitor for week ending 29 May 2020

This week's highlights

  • Hopes of economic re-opening extended to optimism for the financial sector last week. Australian bank ETFs were the clear top performers, with MVB, OZF and QFN all registering double digit returns for the week. High yield domestic equity funds also benefited from the bank rally, with SYI, RDV and active fund EINC all amongst the top performers. Gold miners (GDX and MNRS), biotechnology (CURE) and big-tech (FANG) pulled-back from recent strong performances to lead the equity decliners for the week.

  • Gold remained steady, above US$1,700/oz last week, though a rising Australian dollar saw GOLD fall 2% for the week. Platinum fund ETPMPT gave up some of last week’s gains, falling 2.9%. While leveraged US dollar fund YANK dropped 4.6% as the Australian dollar steamed towards US67c .

  • Total flows into domestically domiciled ETFs were $281m, while outflows totalled $45m. Bearish domestic equity fund BBOZ saw the biggest inflows for the week, followed by GOLD. Domestic cash fund AAA and currency hedge S&P 500 (IHVV) saw the bulk of the week’s outflows.

  • BBOZ was the most traded fund for the week, followed by domestic equity fund VAS. NDQ and OOO saw above average volumes.

  • ETFS EURO STOXX 50 ETF (ESTX), which invests in 50 of the largest companies in the eurozone returned 5.3% for the week. Optimism is rising that the policy response to coronavirus in Europe, including the establishment of an EU recovery fund and the purchasing of riskier assets by the ECB, will see a quicker than expected economic rebound.