Resources

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To access the ETF Trends 2020 whitepaper, click here. The ETF landscape has expanded rapidly from the straight index replication of the past to more tailored offers covering themes, specific industries or sectors and even using alternative weighting. Advances in technology has allowed ETFs to become more sophisticated to meet with investor needs and demands. The value of the Australian ETF market is currently $A60.24bn[1] and is anticipated to continue to grow both in size and available options. Here are five trends likely to continue in 2020. 1. The search for yield Continued globally low interest rates means investors are seeking alternative sources of yield. Some are still looking at fixed income, but focusing on international options like the US, which has higher interest rate compared to its counterparts. Others are considering using equity dividend streams to help provide an income. Investors concerned about volatility risks for an equity approach might look towards infrastructure ETFs. The infrastructure sector includes many essential services areas like utilities, telecoms, industrials and transport which tend to be less vulnerable to market cycles and movements. Investments in gold tend to be popular with investors in times of low yield and market volatility. Holding appeal for both consumption purposes and investment, the performance of gold tends to have low correlation with other asset classes and tends to offer stability in times of market volatility. ...
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To access the white paper, please click the download now button above. The continued evolution of the ETF landscape has seen it move from broad-based index replication, to select sectors, based on certain themes or even smart beta (alternative weighting to capture yield or value). In 2020, ETF Securities expects a number of trends to influence the ETF landscape across economic drivers, investor dynamics and enhanced investment styles. Below is a summary of these, you can also read more detail in the ETF Trends 2020 Whitepaper. Economic themes for ETFs Investors have been faced with globally low interest rates across 2019 and this is anticipated to continue due to geopolitical risks, such as tensions between US and Iran, or typical market volatility associated with a US Presidential Election year. Further to that, Australian investors have faced ongoing economic challenges from the slowdown in the resources and residential property sectors, stagnant wages growth and employment figures and will see further repercussions from the devastating 2019/2020 fire season. ...
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This week's highlights Precious metals Palladium and Platinum surged last week. ETFS Physical Palladium (ETPMPD) continued its run up 17.3% and ETFS Physical Platinum (ETPMPT) was up 6.2%. The flow on effects were seen in the basket of Gold, Silver, Palladium and Platinum. ETFS Physical Precious Metal Basket (ETPMPM) was also up 6.2%. Global and domestic equities continued their strong rally as they broke through and maintained all time highs. Vanguard Global Infrastructure Index ETF (VBLD) was up 3.3% and Magellan Global Equities Fund (MGE) up 3.2%. Global banks, oil and Australian dollar hedge funds were amongst worst performers. BetaShares Strong Australian Dollar Hedge Fund (AUDS) was down 1.1%, BetaShares Crude Oil Index ETF - Ccy Hedged (OOO) down 0.7% and BetaShares Global Banks ETF (Hedged) (BNKS) down 0.3%. Inflows for the week were $414 Million and outflows totalled $19 million. Majority of the inflows were seen by iShares S&P/ASX 200 ETF (IOZ). Outflows were highest from BetaShares S&P/ASX 200 Financials Sector ETF (QFN). ...