ETF Monitors

composed-banner-left

Weekly ETF Monitor for week ending 8 July 2022

composed-banner-right-monitor.png

This week's highlights

  • The crypto rebound was a key driver of returns last week, with five of the top 10 performers – DIGA, CRYP, EETH, CBTC, EBTC – offering exposure to cryptocurrency.

  • The ETFS S&P Biotech ETF (CURE), which invests in biotech companies, was the top performing non-crypto index ETF. The biotech industry saw a small resurgence last week, following a difficult year.

  • Commodities-focussed ETFs such as QAU, OOO, ETPMAG, GDX, featured heavily in the bottom performers. Commodities have seen something of a reversal of fortunes, going from market darlings earlier this year to falling sharply in recent weeks. The reversal likely owes to fears of a recession replacing fears of inflation.

  • The ETF industry saw $496 million in reported inflows, with bond ETFs accounting for over one-third of these. Inflows into bond ETFs may suggest investors believe inflation fears are peaking.

  • There was $163 million in reported outflows. Currency hedged ETFs – such as FUEL, IHHY, BNKS, QAU – featured heavily in the mix, reflecting the strong US dollar.

  • Trading volumes saw a rotation towards fixed income ETFs, with four of the top 10 most traded ETFs offering fixed income exposure.