ETF Monitors


Weekly ETF Monitor for week ending 6 May 2022


This week's highlights

  • Short tech, long commodities has been the trade of 2022. And we saw that again in last week’s performance figures. The best performing ETFs were in commodities: oil (OOO, FUEL) and platinum (ETPMPT). While the bottom performers were mostly tech-related.

  • In an ominous sign for Australia’s residential property market, property ETFs – VAP, SLF, MVA – made rare appearances in the bottom performers. Property tends to do badly when interest rates rise. This is because most property transactions are debt-financed, and higher rates makes servicing debt harder.

  • The industry saw $250m worth of inflows. The market gobbled up everything to do with the banks. BNKS, FLOT and HBRD were all in the top 10 inflow winners. Banks are thought to do well when interest rates rise as they can widen their net interest spreads.

  • There were $44 million of outflows. Following performance, outflows were concentrated in the tech sector.

  • iShares ASX 200 ETF (IOZ) was the most heavily traded ETF by far last week—trading almost double the value of the second-most heavily traded ETF (VAS).

  • ETFS Physical Platinum (ETPMPT) offers low-cost access to physical platinum via the stock exchange and provides diversification away from traditional asset classes.