This week's highlights
Markets suffered a poor start to the year with technology stocks stumbling due to concerns around rising inflation and the Fed raising rates sooner than expected. Investors began rotating into value-style sectors such as financials and energy. As a result, the top-performing fund was the ETFS Ultra Short Nasdaq 100 Hedge Fund (SNAS) up 8.5%, followed by BetaShares Global Energy Companies ETF (Hedged) (FUEL) up 6.7%. Crypto-related funds CRYP and DIGA continued to struggle and were the week’s poorest performing ETFs, returning -11.5% and -19.1% respectively.
Total reported flows into domestically domiciled ETFs were $469m, while outflows amounted to $526m. The largest inflow for the week was into BetaShares Australian High Interest Cash ETF (AAA) with investors seeking risk-off assets. The largest outflow for the week was iShares S&P/ASX 200 ETF (IOZ) of $513m.
IOZ and STW, Australian ASX 200 ETFs, were the most traded funds for the week.
ETF Securities offers both domestic and international value ETFs through ZYAU and ZYUS. But for investors looking to potentially buy the dip given the recent pull-back in the tech space, they can do so through ASX listed ETFs like TECH.