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Weekly ETF Monitor for week ending 8 November 2019

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Nov 12, 2019

This week's highlights The improving trade outlook saw a risk-on sentiment return to global equity markets. Asia and technology focused funds outperformed. UBS IQ MSCI Asia APREX 50 Ethical ETF (UBP) was the week’s top performer, followed by ACDC and ASIA. Gold mining funds (GDX and MNRS) and property funds (REIT and MVA) were amongst the weeks poorest performers. Precious metals pulled-back. ETFS Physical Silver (ETPMAG) was the week’s biggest mover, closing down 6.5%. Gold and platinum also declined. Total flows into domestically domiciled ETFs were $253m, while outflows totalled $50m. IOZ and QAU saw the largest inflows for the week, followed by BILL and QPON. Cash fund AAA saw the largest outflows for the week. VAS was the most traded fund last week, followed by STW and AAA. IHCB and IEM saw above average volumes. ETFS Battery Tech & Lithium ETF (ACDC) offers investors equally-weighted exposure to the energy storage and production megatrend by investing in a selection of global companies that are either developers of battery storage technology, or producers of lithium. The fund has produced a year-to-date return of 16.9% .

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Weekly ETF Monitor for week ending 1 November 2019

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Nov 05, 2019

This week's highlights The U.S. Equity Market hit fresh highs last week, which saw the iShares S&P 500 AUD Hedged ETF (IHVV) finish the week 1.5% up. Globally, the healthcare sector had a strong week, with BetaShares Global Healthcare ETF (Hedged) (DRUG) up 2.6% and ETFS S&P Biotech ETF (CURE) returning 1.6% for the week. Australian financials had a weak week. VanEck Vectors Australian Banks ETF (MVB) was down 3.4%, while SPDR S&P/ASX 200 Financials ex A-REIT Fund (OZF) and BetaShares S&P/ASX 200 Financials Sector ETF (QFN) were both down 3.1%. Total flows into domestically domiciled ETFs were $258m, while outflows totalled $62m. QPON and FUEL saw the largest inflows for the week, followed by HBRD and a mix of equity funds. IHCB and ILB saw the bulk of outflows for the week. VAS was the most traded fund last week, followed by FUEL and QPON. The best performing ETF Securities fund was the ETFS S&P Biotech ETF (CURE). This fund offers investors equally-weighted exposure to the U.S. biotechnology sub-sector. It captures returns from firms that focus on the research and development of innovative drugs and treatments. The performance of individual biotechnology companies can be speculative and is highly dependent on FDA approvals and M&A activity. CURE offers exposure to advances in the sector, while diversifying the single-name risk across more than 120 companies.

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Weekly ETF Monitor for week ending 25 October 2019

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Oct 29, 2019

This week's highlights Global stocks rallied last week on a temporary truce in U.S.-China trade relations. High beta equities, such as ETFS S&P Biotech ETF (CURE) and BetaShares Global Cybersecurity ETF (HACK) posted strong gains. Oil rallied strongly, with OOO up 5.2% and energy company ETF (FUEL) returning 3.9% for the week. Precious metals also posted strong gains across the board. ETFS Physical Gold (GOLD) gained 1.9%, while ETFS Physical Platinum (ETPMPT) was the week’s overall top performing fund, returning 5.4%. Total flows into domestically domiciled ETFs were $227m, while outflows totalled $39m. AAA and QRE saw the largest inflows for the week, followed by GOLD and a mix of equity and fixed income funds. Domestic financial sector and property ETFs (QFN and MVA) saw the bulk of outflows for the week. VAS was the most traded fund last week, followed by STW and AAA. QFN and QRE saw above average volumes. ETFS S&P Biotech ETF (CURE) offers investors equally-weighted exposure to the U.S. biotechnology sub-sector. It captures returns from firms that focus on the research and development of innovative drugs and treatments. The performance of individual biotechnology companies can be speculative and is highly dependent on FDA approvals and M&A activity. CURE offers exposure to advances in the sector, while diversifying the single-name risk across more than 120 companies.

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Weekly ETF Monitor for week ending 18 October 2019

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Oct 22, 2019

This week's highlights Global markets were stable last week albeit news from the latest IMF reports which gave a bearish outlook to international markets. The top performer for the week was ETFS Physical Palladium (ETPMPD), up 2.9%. Strong demand and limited supply has surged the precious metal spot price to fresh highs. Country specific exposures such as BetaShares Japan ETF (HJPN) and ETFS Reliance India Nifty 50 ETF (NDIA) both performed well, up 2.6% and 2% respectively. The worst performers over the week were HACK and PMGOLD, down 2.8% and 2.3%. Chinese and Australian resources exposures were also down over the week. VanEck Vectors ChinaAMC A-Share ETF (CETF) was down 2.3% and SPDR S&P/ASX 200 Resources Fund (OZR) down 2%. Flows into Australian ETFs totalled $148m and outflows were $81m. The best flows for the week were spread. ETFS Physical Gold (GOLD) had inflows of $10m, while a trio of iShares funds also received strong flows. SPDR S&P/ASX 200 Fund (STW) and BetaShares Australian High Interest Cash ETF (AAA) saw majority of the outflows.

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Weekly ETF Monitor for week ending 11 October 2019

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Oct 15, 2019

This week's highlights European and Asian stocks rallied last week on optimism relating to U.S.-China relations and Brexit. BetaShares FTSE 100 ETF (F100) and ETFS EURO STOXX 50 ETF (ESTX) were the top performing equity ETFs for the week, followed by HEUR and UBE. CNEW and IKO were the top performing Asian equity funds. Gold fell below US$1,490 per ounce. ETFS Physical Gold (GOLD) fell 1.8%, while mining ETFs GDX and MNRS fell by close to 3%. Platinum and palladium funds added 1.2% and 1.8% respectively, while oil fund, OOO, added 3.7% for the week. Total flows into domestically domiciled ETFs were $228m, while outflows totalled $43m. IOZ dominated inflows with $105m, while STW saw $25m of outflows. GOLD saw $10m of inflows, while the remaining flows were spread between a mix of equity and fixed income funds. IOZ was the most traded fund last week, followed by other broad-based domestic funds (VAS and STW). VAP and VHY saw above average trading volumes. ETFS EURO STOXX 50 ETF (ESTX) offers investors exposure to 50 of the largest companies from across the eurozone. The EURO STOXX 50 Index, which is the key benchmark for eurozone equities, is one of the most liquid and traded indices across global equity markets. The fund holds well know European names including the likes of Total, SAP, LVMH and Siemens.

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ACDC: Beneath the Bonnet

Oct 09, 2019

Published: 10th October 2019 Product in Focus: ETFS Battery Tech & Lithium ETF Key Points Bloomberg New Energy Finance predict that global lithium-ion battery demand will grow 8-fold by 2030. Over 2 million electric vehicles were sold in 2018, accounting for less than 2% of global passenger vehicle sales. Sales forecasts are estimated to rise to 56 million by 2040. ACDC aims to provide investors with exposure to growth across the entire battery technology value-chain, including lithium miners and energy storage companies. Recent years have seen significant developments in lithium-ion battery power output and efficiency. Lighter and smaller batteries with increased output and falling prices have opened-up a wide range of new applications. These have already had big impacts on the consumer electronics market. The next step in the evolution of the battery technology industry is in larger scale applications. Electric vehicles for private and mass transportation, aided by the emergence of autonomous vehicle technologies and the rapid reductions in charging times. Further, use of lithium-ion batteries is promoting the growth of renewable energy technologies such as solar and wind, which are now able be consumed on demand and not only at the right times, or when weather permits. ETFS Battery Tech & Lithium ETF (ASX Code: ACDC) aims to provide investors with exposure to growth across the entire battery technology value-chain, from lithium miners to energy storage companies across a range of established and emerging companies. This note looks at the key areas driving growth across this quickly developing industry and highlights the operations of several selected companies to provide real-world examples of technological developments and how they are being monetised. Lithium – exploring the supply and demand outlooks Forecasts complied by Bloomberg New Energy Finance predict that global lithium-ion battery demand will grow 8-fold by 2030. This will have a significant impact on demand for lithium carbonate equivalent (LCE) and other core metals, such as copper, aluminium and nickel as well as rare earth metals, such as cobalt. China maintains a dominant position in the supply-chain through both its control of mining companies and its dominance of refining capacity. Electric vehicle demand is anticipated to be the core growth driver over the coming decades, with passenger EVs dominating. Current forecasts point to a supply surplus out to at least 2025, which has been reflected in recent price action. As shown in figure 3, lithium prices have been in decline for the past 15 months, following a three-year bull-run during which prices trebled. Stock in Focus: Albemarle Corp Stock Code: ALB Albemarle is the world’s largest producer of LCE and a pioneer in the development of brine production processes that are commonly used today. Products include lithium metal as ingots, foil, rods and anodes, high purity lithium alloys, lithium salts and lithium sulphide, all of which have battery-related applications. One of its stated aims is to provide materials and to support the growth and success of lithium-ion technology to promote advances in mobile communication, power storage and electric mobility. Production and storage sites are located in Europe, North and South America, Asia and Australia, while Albemarle’s customer base is spread across more than 100 countries. Source: www.albemarle.com Financial information as at 30 Sep 2019: Electric vehicles Over 2 million electric vehicles were sold in 2018, which represents significant growth from a low base, but accounts for less than 2% of global passenger vehicle sales. Forecasts compiled by Bloomberg New Energy Finance indicate accelerating growth over the coming decades with sales to rise to 10 million in 2025, 28 million in 2030 and 56 million by 2040. By the mid-2020s electric vehicle sales are expected to reach parity with internal combustion vehicles, at which point 30% of passenger vehicles on our roads will be electric. Stock in Focus: BYD Stock Code: 1211 BYD is a Chinese manufacturer of passenger vehicles, mass transit vehicles and battery technology and is heavily backed by Warren Buffett's Berkshire Hathaway, which holds a 25% stake. China currently represents around 60% of the global electric vehicle market, with over 600,000 fully electric vehicles sold in the first half of 2019. BYD is the largest Chinese producer, with market share currently running at close to 25%. BYD’s market share has increased in 2019 to-date, despite a slowing in the Chinese market as a result of the removal of subsidies. 63% of BYD’s revenue is currently generated by electric vehicles. Aside from passenger vehicles, BYD is currently a major supplier of electric busses, with government contracts across Asia, Europe and North and South America. BYD is also investing in large-scale battery storage projects. Source: www.byd.com, Bloomberg New Energy Finance Financial information as at 30 Sep 2019: Grid storage batteries The electric power sector has seen significant disruption from renewable sources in recent years, with wind, solar and other sources quickly becoming more economically viable relative to fossil fuel sources in many markets. Component costs are falling and efficiency is rising but improvements in battery technology have been the key to releasing these technologies and allowing them to meet consumer demand at times when the sun isn’t shining and the wind isn’t blowing. Bloomberg New Energy Finance predicts 50% of world electricity output to be wind and solar generated by 2050 and that this transformation will require heavy investment in battery technology. There are numerous competing battery types and new technologies under development. Examples include flow batteries, lead-carbon, sodium-sulphur and compressed-air energy storage. Lithium-ion, however, is the established technology of choice and currently accounts for 85% of commissioned, utility-scale battery storage worldwide. Source: Bloomberg New Energy Finance “New Energy Outlook 2019” Stock in Focus: GS YUASA Stock Code: 6674 GS Yuasa is a Japanese company that manufactures and sells automotive batteries, industrial batteries, power supply systems and other electrical equipment. They are a leader in lithium-ion technology and provide a range of storage solutions for renewable and reserve power applications. The company is involved in multiple large-scale energy storage projects including constructing one of the world’s largest lithium-ion batteries, to be connected to a wind energy plant in North Hokkaido, Japan. The battery will have an output of 240MW and a capacity of 720WMh, which is equivalent to 45,000 electric vehicles. Source: www.gs-yuasa.com Financial information as at 30 Sep 2019: About ACDC ACDC tracks the Solactive Battery Value-Chain Index, which aims to capture the performance of companies that are providers of electro-chemical storage technology and mining companies that produce metals that are primarily used for manufacturing of lithium batteries. Companies comprising the Index are determined by reference to: 1. The U.S. Department of Energy's DOE Global Energy Storage Database, which identifies companies that are electro-chemical storage technology providers; and 2. Metal Bulletin, which identifies mining companies that produce lithium. Constituents are equally weighted to provide maximum diversification. ACDC currently holds 29 stocks from seven countries with sector allocations heavily in favour of the Industrials, Materials and Consumer Discretionary sectors.

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