ETF Monitors

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Weekly ETF Monitor for week ending 9 August 2019

This week's highlights

  • Global equities dropped last week as U.S.-China tensions escalated. European markets were also hit by political instability in Italy and slowing industrial activity. Gold mining ETFs (MNRS and GDX) were the top performing equity funds for the week. Asia-Pac ETFs (CETF, CNEW, UBP and IKO) along with domestic strategy ETFs (HVST, FAIR and SYI) were amongst the poorest performers.

  • The precious metal rally continued. Silver (ETPMAG), gold (GOLD, PMGOLD and QAU) and palladium (ETPMPD) were all amongst the week’s best performing funds, along with a precious metal basket ETF (ETPMPM).

  • Total flows into domestically domiciled ETFs were $302m, while outflows totalled $142m. The biggest inflows were into domestic equities (A200, MVW and IOZ) and gold (GOLD). Floating rate cash products (QPON and FLOT) were also popular. Outflows were primarily from broad international equities (IVV, IEU, ESTX and IJP).

  • A200 was the most traded fund last week, ahead of STW and A200. GOLD continued to trade well above its average volume on sustained investor interest.

  • ETFS Physical Gold (GOLD) returned 3.8% for the week and is now up 20.7% year-to-date. Last week gold traded above US$1,500 for the first time since 2013 and continues to hit new all-time highs in A$ terms. With bond yields continuing to fall, currency wars on the horizon and geopolitical tensions on the rise, there is a strong case for holding gold as both a portfolio diversifier and store of value. Globally over US$9bn has flowed into physical gold ETFs so far in 2019.