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Weekly ETF Monitor for week ending 26 February 2021

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Mar 02, 2021

This week's highlights Equity market saw a volatile week with most major benchmarks finishing lower. Short Nasdaq-100 fund SNAS was the top performing fund for the week followed by BBUS. Australian resources funs QRE and OZR were the top performing unleveraged equity funds. LNAS was the biggest decliner for the week, followed by a range of tech-heavy funds including ATEC, ASIA, ESPO and HACK. Precious metals were mixed, with palladium (ETPMPD) and silver (ETPMAG) posting positive weeks, while gold declined. Platinum (ETPMPT) was the biggest mover, ending the week 5.5% lower. Oil fund OOO gained 3.6% for the week. Currency funds YANK, EEU and USD were also amongst the top performers in the back of a lower AUD. Total reported flows into domestically domiciled ETFs were $339m, while outflows totalled $147m. Nasdaq-100 fund NDQ and domestic property fund MVA saw the week’s biggest inflows, followed by a range of equity and fixed income funds. Hedged S&P 500 fund IHVV saw the biggest outflows or the week. VAS was the most traded fund for the week, followed by IHVV and NDQ, which saw above average volumes. ETFS Ultra Short Nasdaq 100 Hedge Fund (SNAS) returned 11.7% for the week. SNAS provides inverse exposure to the Nasdaq-100 Index within a target range of -200% and -275% of its net asset value. Furthermore, SNAS is currency hedged to reduce exposure to movements in the AUD/USD exchange rate.

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Weekly ETF Monitor for week ending 19 February 2021

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Feb 23, 2021

This week's highlights Equity markets eased off the accelerator last week and treasury yields climbed. ETFS Physical Platinum (ETPMPT) was the best performer over the week up 4.5%. Sector wise, financials and resources also performed well. BetaShares Global Banks ETF (Hedged) (BNKS) was up 3.2% and VanEck Vectors Australian Banks ETF (MVB) up 2.7%. The worst performers for the week were gold miners and healthcare. VanEck Vectors Gold Miners ETF (GDX) was down 7.6% and ETFS S&P Biotech ETF (CURE) was down 4.4%. Net flows for the week were A$242m, comprised of A$329m of inflows and A$84m of outflows. The largest flows were seen into BetaShares Australian High Interest Cash ETF (AAA) and BetaShares Asia Technology Tigers ETF (ASIA). The strengthening Aussie dollar looks to be encouraging investors into unhedged ETF variants. iShares Core S&P 500 (IVV) also had strong inflows whilst iShares S&P 500 AUD Hedged (IHVV) had strong outflows. Vanguard Australian Shares Index ETF (VAS) and SPDR S&P/ASX 200 Fund (STW) continue to have the largest turnover of products with ETFS Physical Gold (GOLD) rounding out the top ten. ETFS Physical Platinum (ETPMPT) offers investors a simple, cost-efficient and secure way to access platinum by providing a return equivalent to the Australian dollar price movement of platinum less a daily management fee.

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Weekly ETF Monitor for week ending 12 February 2021

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Feb 16, 2021

This week's highlights Equity markets hit new record highs last week, with the technology and China funds leading the way. CETF was the week’s top-performing equity fund, followed by FANG, ASIA, TECH and CNEW. Domestic property funds (SLF and MVA) and equity yield funds (RDV and DVDY) were amongst the biggest decliners, alongside biotech fund CURE, which gave back some of its gains from the previous week. Precious metals were mixed, with palladium (ETPMPD) returning 7.6% to be the week’s overall top-performing fund. Gold and platinum declined, while silver gained. Oil fund OOO was also amongst the top performers, gaining 4.6%. Total reported flows into domestically domiciled ETFs were $508m, while outflows totalled $207m. Low volatility fund WVOL saw the week’s biggest inflows, followed by international equity funds including IEU and IVV. Hedged S&P 500 fund IHVV saw the biggest outflows for the week. VAS was the most traded fund for the week, followed by AAA and IOZ. IEM saw above average volumes. ETFS FANG+ ETF (FANG) returned 3.7% for the week. FANG offers investors exposure to a concentrated portfolio of global innovation leaders in the tech and tech-enabled space, including Apple, Alphabet (Google), Amazon, Netflix and Tesla, amongst others.

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Weekly ETF Monitor for week ending 5 February 2021

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Feb 09, 2021

This week's highlights Equity markets bounced-back last week, with high-beta plays outperforming. ETFS S&P Biotech ETF (CURE) was the top performing unleveraged fund for the week, adding 9.4%. India (NDIA), Asian technology (AISA), innovation leaders (FANG), esports (ESPO) and battery technology (ACDC) funds were all amongst the top performers. ETFS Ultra Long Nasdaq 100 Hedge Fund (LNAS) was the overall top performing fund, returning 13.0%. Major precious metals declined last week, with gold (GOLD, QAU and PMGOLD) ending the week lower. Silver (ETPMAG) also ended the week down, having been more than 8% higher in Reddit-inspired trading earlier in the week. Platinum (ETPMPT) and palladium (ETPMPD) both posted modest gains, while oil fund OOO gained 8.9%. Total reported flows into domestically domiciled ETFs were $318m, while outflows totalled $143m. Silver fund ETPMAG saw the week’s biggest inflows, followed by a range of equity funds including IOZ, IHVV, QUAL and NDQ. Domestic equity fund A200 saw the biggest outflows for the week. IOZ was the most traded fund for the week, followed by IHVV and VAS. IHVV and ETPMAG saw above average volumes. ETFS Reliance India Nifty 50 ETF (NDIA) returned 8.8% for the week. NDIA aims to track movements in India’s benchmark the NSE Nifty50 Index and provides investors with exposure to the growth potential of India’s rebounding economy, which the IMF predicts will grow by 11% in 2021.

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Latest Reddit campaign for Silver may be on the money

Feb 05, 2021

Demand for silver skyrocketed this week, off the back of the latest campaign from Reddit’s r/wallstreetbets group. Investors may wonder what’s beyond the frenzy and whether the Reddit campaign has unexpected substance to it. Download the complete article here The Reddit Story Following a bid to counter short-selling of GameStop, r/wallstreetbets turned its collective eyes to silver. With the claim from some segments within the Reddit group that silver prices were being held artificially low by bank and hedge fund manipulation and short-selling, amateur investors piled in to purchase silver ETFs and mining companies in a bid to push prices up. There were record volumes for trades into US silver ETFs on Monday 2 February 2021 and prices rose to eight-year highs. While the GameStop campaign may have been successful in pushing prices up, silver is a different story for a few reasons. Firstly, silver is a far larger, more complicated and more valuable market compared to the much smaller share pool of GameStop. Silver is used and purchased for industrial and investment purposes and only a portion of the world’s silver reserves is traded on stock exchanges. Effectively, there are more factors influencing the prices of silver than simply share trading. Secondly, there are only limited short positions in silver, in fact, most banks and investment managers hold long positions on silver and held a positive outlook on silver’s prospects prior to the Reddit rally¹. By contrast, there were concerns over GameStop’s future before Reddit warriors pushed prices up to levels that are now considered vastly inflated compared to the company’s financial position and prospects. While the rationale for the silver Reddit rally may be flawed (and there are questions over the extent Reddit really caused the rally), investors may have inadvertently selected an asset with a promising outlook and potential benefits to a portfolio. It is up to investors to take the time to assess the value of silver before selling up when the frenzy eases. The drivers of silver and it's outlook in 2021 Silver has a range of uses and more than 50% of demand is for industrial purposes, such as in cars, solar panels, medical equipment and electrical circuits². Annually, over 36 million ounces of silver is used in motor vehicle production³ and this is predicted to grow to nearly 90 million ounces by 20254 Silver is also antimicrobial, which makes it popular in medical use5. In 2020, silver supply and demand was affected by COVID-19 with lockdowns dampening industrial demand, while mining production also fell and impacted supply. Industrial production is tipped to ramp up in 2021, supported by government stimulus packages globally, the rollout of vaccines and the prospect of economic recovery. In turn, demand for silver is likely to increase in line with this. Further, silver is heavily used in renewable energy systems, such as solar panels and as part of electronics. Silver is also likely to benefit from the refocused efforts on climate change globally, with a number of major renewable energy projects announced, such as the NSW government’s $32 billion renewable energy plan6. Investment demand for silver was also trending upwards from late 2020, with investors looking for alternative safe-havens to gold. Silver-backed exchange-traded products (ETPs) surpassed 1 billion ounces for the first time7. Silver can be used as a store of value and traditionally offers positive performance during periods of low interest rates. With the prospect of continued low global interest rate and concerns over potential inflation, investors have shown increased interest in exposure to this precious metal. To read more download the complete article

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Weekly ETF Monitor for week ending 29 January 2021

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Feb 02, 2021

This week's highlights Major equity markets sold off last week on valuation concerns and Reddit-inspired short squeeze mania. Top performing equity funds were all short plays; SNAS, BBUS, BBOZ and BEAR. At the other end, Australian resources ETFs (MVR, QRE and OZR) were the poorest performers amongst non-leveraged funds. Battery technology (ACDC), energy (FUEL) and Asia tech (ASIA) were also all in negative territory. Precious metals had a strong week. Silver (ETPMAG) was the top performer across the market following Reddit-led buying across physical and ETF markets globally. Gold (GOLD), platinum (ETPMPT) and diversified precious metals basket (ETPMPM) funds were all amongst the week’s top performers. Leveraged US dollar fund YANK and pound sterling fund POU also posted strong weeks. Total reported flows into domestically domiciled ETFs were $680m, while outflows totalled $21m. Domestic equity fund VAS saw the biggest inflows, followed by a range of global equity funds including VGS, VDHG, VGAD and VGE. Cash fund AAA saw the bulk of the week’s outflows. VAS was the most traded fund for the week, followed by STW and BBOZ. VGS saw above average volumes. ETFS Physical Silver (ETPMAG) was the week’s top-performing fund, returning 8.9%. ETPMAG aims to track movements in the spot price of silver in Australian dollars by providing investors with an entitlement to physical silver bullion. The bullion is vaulted with JP Morgan in London and is independently audited twice annually.

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