Jun 10, 2020
This week's highlights Bullish sentiment continued last week as most major equity indexes ended the week up. Global Banks surged and oil continued to rally on the back of extended output cuts. Among the top performers for the week were BetaShares Global Banks ETF (Hedged) (BNKS) up 14% and BetaShares Crude Oil Index ETF - Ccy Hedged (OOO) up 10.1%. Geared US Dollar currency ETFs, miners and precious metals were amongst the worst performers. BetaShares Strong US Dollar Hedge Fund (YANK) was down -10.7% and VanEck Vectors Gold Miners ETF (GDX) was down -9.6%. Flows for the week were mostly seen across Cash and Core exposure ETFs. iShares Core Cash ETF (BILL) had A$43.1m of inflows and iShares CORE Composite Bond ETF (IAF) had A$21.3m of inflows. Outflows were highest across iShares S&P 500 AUD Hedged (IHVV) and iShares Global Consumer Staples ETF (IXI) Chinese Equity, Technology and precious metals remain the best performers YTD.
Jun 10, 2020
Renewable energy is a growing sector that is set to overtake fossil fuel energy in the future. Investors interested in this area should consider battery technology and storage, an area that is essential for the growth of renewables. A growing market: why battery technology? The value chain for battery technology ranges from mining companies, mining for metals like lithium, to manufacturers of battery storage and storage technology providers. All are potential beneficiaries of the anticipated growth in this industry. Lithium ion batteries have transformed the battery industry and accounts for 85% of commissioned, utility scale battery storage worldwide. By 2022, utility scale battery energy storage capacity is expected to more than double, while the market for battery technology is anticipated to reach $90bn by 2025, growing more than 12%. This growth is due to growing demand and increasing affordability of renewable energy like wind and solar power, along with the transition towards electric cars. Renewable energy in particular is an intermittent source and thus, dependent on reliable storage systems to ensure ongoing power. The Telsa-built Hornsdale Power Reserve in South Australia is a large-scale example of battery storage in play. How to invest in battery technology? Investors can access battery technology exposure in a range of ways. Focusing on value chain component companies such as mining companies or battery manufacturers. Considering broader established companies with some exposure to battery technology. Managed options, either active or via ETFs like ETFS Battery Tech & Lithium ETF (ASX code: ACDC). For more information about ETFS Battery Tech & Lithium ETF (ASX code: ACDC) or investing in battery technology, please contact us on 02 8311 3488 or infoAU@etfsecurities.com.au
Jun 02, 2020
This week's highlights Hopes of economic re-opening extended to optimism for the financial sector last week. Australian bank ETFs were the clear top performers, with MVB, OZF and QFN all registering double digit returns for the week. High yield domestic equity funds also benefited from the bank rally, with SYI, RDV and active fund EINC all amongst the top performers. Gold miners (GDX and MNRS), biotechnology (CURE) and big-tech (FANG) pulled-back from recent strong performances to lead the equity decliners for the week. Gold remained steady, above US$1,700/oz last week, though a rising Australian dollar saw GOLD fall 2% for the week. Platinum fund ETPMPT gave up some of last week’s gains, falling 2.9%. While leveraged US dollar fund YANK dropped 4.6% as the Australian dollar steamed towards US67c . Total flows into domestically domiciled ETFs were $281m, while outflows totalled $45m. Bearish domestic equity fund BBOZ saw the biggest inflows for the week, followed by GOLD. Domestic cash fund AAA and currency hedge S&P 500 (IHVV) saw the bulk of the week’s outflows. BBOZ was the most traded fund for the week, followed by domestic equity fund VAS. NDQ and OOO saw above average volumes. ETFS EURO STOXX 50 ETF (ESTX), which invests in 50 of the largest companies in the eurozone returned 5.3% for the week. Optimism is rising that the policy response to coronavirus in Europe, including the establishment of an EU recovery fund and the purchasing of riskier assets by the ECB, will see a quicker than expected economic rebound.
Jun 02, 2020
Recorded on the 27th May 2020. This webinar focuses on the alternative asset that is gold. In this webinar, we discussed: Gold's strategic and tactical place in a portfolio Understanding gold's valuation factors: The short, medium and long-term price drivers Examining the recent rise of gold The future outlook To watch the webinar recording, please click here.
May 26, 2020
This week's highlights Equity markets returned to risk-on mode last week with cyclical sectors leading the way. Resource (QRE and OZR) and technology (ATEC) sector ETFs were the top domestic performers for the week. U.S. small- and mid-caps (IJR and IJH) along with global property (REIT) were the best performing international equity funds. Asian focused funds (CNEW, PAXX, NDIA, CETF, VAE and IZZ) were all amongst the week’s poorest performers along with gold miners (GDX) Gold stabilised above US$1,700/oz last week, while other precious metals advanced. Platinum fund ETPMPT was one of the week’s top performers, returning 6.9%. Oil continued to rise from its April lows, with OOO returning 10.7% last week. The Australian dollar moved back above US65c . Total flows into domestically domiciled ETFs were $372m, while outflows totalled $91m. Domestic cash fund BILL saw the biggest inflows for the week, followed by bond fund IAF and GOLD. Domestic cash fund AAA saws the bulk of the week’s outflows. Bearish equity fund BBOZ was the most traded fund for the week, followed by domestic equity fund VAS. GOLD saw above average volumes. ETFS Physical Platinum (ETPMPT), which invests in physical platinum bullion, returned 6.9% for the week. Prices are being driven by a combination of rising demand, mainly from China, as vehicle production comes back on line, in contrast to restricted supply caused by mine lockdowns in South Africa, the world’s largest producer.
May 20, 2020
This week's highlights Equity markets mostly declined last week as the recent rally stalled, though the domestic market ended the week in positive territory. Gold miners (GDX) and biotechnology (CURE) ETFs were the top performing equity funds. Global property funds (REIT and DJRE) were the biggest decliners, followed by U.S. small caps (IJR), banks (BNKS) and global value stocks (VVLU). Precious metals rose across the board, with silver leading the way. ETPMAG gained 10.6% to be the week’s top performing fund, while GOLD rose by 3.8%. Strong U.S. dollar fund YANK was also amongst the top performers. Total flows into domestically domiciled ETFs were $407m, while outflows totalled $124m. Domestic equity fund IOZ saw the biggest inflows for the week, followed by bond fund IAF and STW. Global corporate bond fund IHBC, cash fund ISEC and resources sector fund QRE saw the week’s biggest outflows. IOZ was the most traded fund for the week, followed by bearish equity fund BBOZ. Cash fund BILL saw above average volumes. ETFS Physical Silver (ETPMAG), which invests in physical silver bullion, returned 10.6% for the week. Being a more industrial commodity than gold, silver saw much bigger drawdowns in late-February and early-March as markets reacted to the rapid spread of COVID-19. At that time the ratio of gold to silver prices hit all-time highs. Since bottoming on 19th March, however, ETPMAG has rebounded by 23.7%, compared to 7.6% for GOLD over the same period.