ETF Monitors

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Weekly ETF Monitor for week ending 7 December 2018

This week's highlights

  • Global equities declined last week on growth expectations and spiralling U.S.-China trade tensions. The S&P 500 fell 4.6%, with financials being hit hardest; BetaShares Global Banks ETF (BNKS) fell 5.2% for the week. The EURO STOXX 50 dropped 3.6% as a key week in the Brexit process approaches. The Nikkei 225 fell 3.0%. Domestically, the S&P/ASX 200 ended up on positive territory, up 0.3%. Property funds (MVA and SLF) were the top domestic funds for the week.

  • U.S. 10-year Treasury yields fell 14 basis points on lower growth expectations. Similarly Australian 10-year yields fell 15 basis points. The Australian dollar ended the week 1.3% lower at US72.08c. Pound sterling fell for a fourth consecutive week and approached its lowest levels since June 2017.

  • Precious metals advanced, with gold up 2.4% to US$1,249/ounce. Palladium briefly topped gold as the most valuable precious metal and ETFS Physical Palladium (ETPMPD) is clearly the year's top performing ETF to date, returning 23.4% in 2018. Crude oil also gained, adding 3.3% following OPEC's agreement to cut production by more than originally anticipated.

  • The Australian ETF market saw inflows of $120m into and outflows of $12m from domestically domiciled funds last week. The largest flows were into BetaShares Australia 200 ETF (A200) and a range of international equity funds (WDMF, NDQ and IHVV).