ETF Monitors

Weekly ETF Monitor for week ending 5 March 2021

This week's highlights

  • Equity markets saw a week of sector rotation with cyclical stocks outperforming and technology-related companies lagging. Top performing equity ETFs were in the energy (FUEL), and financial (MVB, QFN, OZF and BNKS) sectors. Low volatility (ZYUS) and value (VVLU) factors outperformed. India funds (IIND and NDIA) were also amongst the top performers. Biotech fund CURE was the poorest performing equity fund for the week, with FANG, ROBO, ESPO and HACK also amongst the poorest performers.

  • Precious metals mostly declined. Platinum (ETPMPT), silver (ETPMAG) and gold (QAU and PMGOLD) were amongst the poorest performers. Palladium (ETPMPD) posted a small gain. Oil fund OOO gained 7.5% for the week and was the overall top performing fund.

  • Total reported flows into domestically domiciled ETFs were $369m, while outflows totalled $252m. Domestic equity fund IOZ and Australian government bond fund AGVT saw the week’s biggest inflows, followed by a range of equity funds including A200, IEM, FAIR and IJR. Cash and variable interest funds AAA, QPON and FLOT saw the bulk of the week’s outflows.

  • VAS was the most traded fund for the week, followed by AGVT, which saw above average volumes.

  • ETFS S&P 500 High Yield Low Volatility ETF (ZYUS) returned 5.5% for the week. ZYUS provides exposure to a selection of 50 names from the S&P 500 based on dividend yield and volatility criteria. ZYUS’s portfolio is typically tilted towards traditional “value” sectors, such as utilities and consumer staples, and may be well positioned to benefit from a prolonged sector rotation in the U.S. market.