ETF Monitors

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Weekly ETF Monitor for week ending 5 July 2019

This week's highlights

  • The Australian share market rallied last week following the RBA’s 25 basis point rate cut. Property ETFs responded strongly, with MVA, VAP and SLF all amongst the top performers. Domestic equity income funds including DIV and EINC also performed strongly.

  • The U.S. dollar gained ground following better than anticipated employment numbers on Friday, tempering expectations of a Fed rate cut this month. Currency funds AUDS, POU and EEU were amongst the worst performing ETFs for the week.

  • ETFS Physical Gold (GOLD) pulled-back from its recent peak falling 0.8% for the week, while gold miners (MNRS) fell 1.0%. Crude oil (OOO) dipped 1.6% on global demand concerns.

  • Total flows into domestically domiciled ETFs were $200m, while outflows totalled $40m. The biggest inflows were into defensive assets such as cash and fixed income/hybrid funds (AAA, IAF, HBRD and BILL) and gold (GOLD). The bulk of outflows were from STW.

  • STW and AAA were the most traded fund last week, while VAP and MGE saw above average volumes.

  • ETFS Physical Palladium (ETPMPD) returned 4.0% for the week and is up 75.2% over the past 12 months. Palladium has all-but recovered from its recent dip and could test all-time highs close to US$1,600 per ounce in the coming weeks.