COVID-19 has been responsible for significant changes in the way we live and work, but it is also influencing the ways we invest. After significant volatility in March, Australian markets posted gains in April with the S&P/ASX 200 returning 8.7%, the largest monthly gain in its history. Investment activity increased too, with even largely dormant investors returning to the fold.
Kanish Chugh, co-Head of Sales at ETF Securities, spoke to Anastasia Anagnostakos, Business Development Manager in the Investment Products Division of the ASX, on her views about how COVID-19 is changing the investment space.
Changing investment behaviour
Activity in April has been a contrast to the fears and defensive activity seen in March, as investors responded to global lockdowns and market volatility.
“Last month, we saw a flight to safety through precious metal ETFs or broad-based market ETFs, whereas this month, investors, rightly or wrongly, are reading into the signs of a recovery, with Australian equity and property ETFs being the main beneficiaries, both being up by almost 12% on the month,” says Ms Anagnostakos.