ETF Monitors

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Weekly ETF Monitor for week ending 6 December 2019

This week's highlights

  • Domestic equities declined last week with the S&P/ASX 200 posting its worst week since early October. Domestic ETFs VHY, SELF, IHD, MVW, RDV, QOZ and SYI were all amongst the week’s poorest performers. The top equity performers were China funds CNEW and CETF along with Japan fund IJP. Bearish equity funds (BBOZ and BEAR) and Australian dollar fund AUDS also posted strong gains.

  • Precious metals pulled-back last week, with the exception of palladium. Crude oil rallied sharply. OOO returned 7.3% and was the week’s top performing fund. Currency hedged commodities (QCB and QAU) were also amongst the better performers.

  • Total flows into domestically domiciled ETFs were $309m, while outflows totalled $112m. New entrant, VanEck Vectors Australian Subordinated Debt ETF (SUBD) saw the largest inflows for the week, followed by a diverse range of fixed income, equity and commodity funds. A200 and AAA saw the bulk of the week’s outflows.

  • A200 was the most traded fund last week, followed by VAS and VGS. SUBD saw strong volume in-line with its flows.

  • ETFS Physical Palladium (ETPMPD) has returned more than 50% year-to-date. Increasingly tight supply and growing demand, primarily from the auto industry, have seen palladium prices trending higher for most of the past four years. At US$1,880 per ounce, palladium is trading at all-time highs and is now at close to a 30% premium to the price of gold.