ETF Monitors

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Weekly ETF Monitor for week ending 8 February 2019

This week's highlights

  • The fallout from the Royal Commission was the biggest driver of domestic equity returns last week as most financial stocks rebounded. Financial sector ETFs (OZF, QFN and MVB) all returned in excess of 6% for the week. Bank-heavy domestic dividend-focused ETFs also performed strongly with SYI, FDIV, RDV, ZYAU and VHY all returning more than 4%.

  • Global equities were broadly negative for the week. BetaShares WisdomTree Japan ETF (HJPN), which fell 2.0%, was the poorest performing broad-based international equity fund for the week.

  • The Australian dollar saw significant movement last week, dropping nearly 2c against the US$. YANK returned 6.3%, while AUDS fell 5.2%. Unleveraged funds ZUSD and USD both returned more than 2%.

  • Precious metals continued to outperform, with ETFS Physical Gold (GOLD) up 2.1% and ETFS Physical Palladium (ETPMPD) adding a further 4.3%, taking its 12 month total return to nearly 55%. Oil declined, with OOO dropping 3%.

  • Total flows into domestically domiciled ETFs were $87m for the week, while outflows totalled $61m. The week’s largest inflows were into VanEck’s domestic property and equally-weighted equity funds (MVA and MVW), while the biggest outflows were from QPON and A200.

  • Vanguard Australian Shares ETF (VAS) was the most traded ETF last week, well-exceeding its long-term average turnover. Vanguard MSCI Index International Series (Hedged) (VGAD) also saw notable activity.

  • Three of ETF Securities’ Future Present range of ETFs (CURE, TECH and ROBO) have returned more than 10% YTD in a sign that growth stocks are returning to favour.