Jan 30, 2018
ETFSTrade idea – A Look Inside the ROBO Global® Index Our world is being transformed as a new wave of innovation, often technology-led, challenges every aspect of how we live and work. In the final article of our Future Present series, we have selected 5 stocks from the ROBO Global® index to showcase how different businesses are riding on this megatrend. The stock stories inclided are; Novanta - Precision Surgery Yaskawa - Industrial Robotics GEA - Food and Beverage Processing Xilinx - Programmable Chips Koh Young - 3D Inspection
Jan 26, 2018
The S&P/ASX 200 increased 0.74% last week with healthcare and materials sectors driving the performance. The S&P 500 continued its positive start to 2018 gaining 2.23%; the EURO STOXX 50 was flat and the MSCI Emerging Markets Index showed no sign of abating, returning over 3% for the week. The Australian dollar took advantage of the weakening USD and closed above US81c on Friday. The weaker USD helped commodities in general, up 2.55% as measured by the Bloomberg Commodities Index and gold ended the week at USD1,349/oz. Oil prices rose 4.37%, ending at US$66/bbl and bringing the YtD return to 9.47%. BetaShares Crude Oil Index ETF (OOO) was the top performing fund for the week, posting a 4.46% gain, while the ETFS Physical Palladium (ETPMPD) was dragged down 3.37%. The domestic Australian ETF market saw strong net inflows last week of $76m. The largest inflows were into iShares Core Composite Bond ETF (IAF) and also into the Platinum International Fund ETF (PIXX) while the largest outflow was seen in iShares Core Global Corporate Bond AUD Hedged ETF (IHCB).
Jan 22, 2018
How the Future Present series fits your portfolio Trade idea – ETF Securities Future Present series i. ETFS Morningstar Global Technology ETF (TECH) ii. ETFS ROBO Global Robotics and Automation ETF (ROBO) Key Takeaways: Technology was the top performing sector in 2017, returning 39% for the calendar year and contributing 25% of the total global equity market return(1). The pace of innovation continues to grow and adoption of new technologies in fields such as robotics and AI is quickly spreading across many industries. Adding funds like TECH and ROBO to an otherwise diversified portfolio offers investors unique opportunities to capture any future growth in this sector, while also reducing overall portfolio risk. (1) Source: Bloomberg data as at 18 January 2017. Information technology companies contributed 5.73% to the total return of 23.06% of the MSCI World Index in 2017. Future Proofing Portfolios Investors looking to future-proof their portfolios in 2018 should consider the opportunities that are presented by investing in new technology and innovation. Fields such as robotics, automation and artificial intelligence (RAII), in particular, are forecast to grow massively in the coming years and impact almost every industry by providing key enabling technologies and new applications for existing technologies. Investments in technology have traditionally been viewed as high return/high risk, however in recent years the established players in the technology world have become highly cash generative and broadly entrenched in our everyday lives. This has given many technology companies defensive, counter-cyclical characteristics that are traditionally more associated with utilities and real estate investments and has changed the way many investors look at the technology sector. ETF Securities Future Present Range The Future Present range of ETFs allows investors to combine well-established technology firms with strong competitive advantages, using TECH, with highly innovative firms from the exciting world of RAII, using ROBO. The below study explores the impact of adding the Future Present range to a simple, diversified ETF portfolio consisting of Australian equities, international equities, fixed income, gold and property. Hypothetical portfolio allocations are detailed in Charts 1 and 2 below: Over the four years of available history, adding a 10% allocation to the Future Present range (5% each to TECH and ROBO), while keeping the allocation to equities constant, not only improves the overall total return by 0.84% per annum, but also reduces the portfolio volatility by 0.95%2. Charts 3 to 6, below, show the risk return characteristics of the two portfolios as well as each of the constituents over 1, 2, 3 and 4 years. Benefits to Your Portfolio Apparent from the four charts below is the strong historical performance of the Future Present ETFs, with the two funds ranking first and second on the basis of returns across all tenors. With regards to volatility or risk, as measured by standard deviation, TECH and ROBO are at the higher end, though not substantially more volatile than either the Australian or international equity ETFs or gold. In all four cases, however, diversification benefits are seen in that adding above average risk investments lowers the overall portfolio risk in all cases, providing investors with better risk/return profiles. This is particularly true for Australian investors with high portfolio allocations to the domestic market, which is very underweight the technology sector. Source: Morningstar Direct as at 31 December 2017. Benchmark index returns are used as a proxy for TECH and ROBO due to insufficient fund history. Returns in AUD. Past performance is not an indicator of future performance. These graphs illustrate the trade-off between risk (standard deviation or volatility around the mean) and reward (expected or average return). The ideal position is within the upper left quadrant of the graphs. Placement here indicates that the portfolio returned more than the risk-free benchmark (typically the yield on high quality government bonds) with lower volatility. The bottom right corner is the least desirable, since this represents highest risk with lowest return
Jan 19, 2018
The S&P/ASX 200 declined 1.1% last week, dragged down by underperformance in the energy and telecoms sectors. The S&P 500 rose 0.86% to record highs, the EURO STOXX 50 reached 10 year highs gaining 1.01%, while the MSCI Emerging Markets Index continued its positive start to the year, returning 2.02% for the week. The Australian dollar was relatively flat, hovering just below US80c. The prospect of a government shutdown in the US diminished the appeal of US assets, pushing the USD lower and yields higher. Oil prices fell for the first time in five weeks, down 1.45% ending at US$63/bbl. BetaShares Strong Australian Dollar Hedge Fund (AUDS) was the top performing fund for the week. Platinum posted another strong week, up nearly 2%, bringing its ytd performance to over 9%. The Australian ETF market saw net inflows of A$10.45m last week. The largest single inflow was into ETFS ROBO Global Robotics and Automation ETF (ROBO), while the largest outflows were from the materials sector, BetaShares S&P/ASX 200 Resources Sector ETF (QRE).
Jan 12, 2018
The S&P/ASX 200 declined 0.9% last week, dragged down by underperformance in the real estate and industrial sectors. The S&P 500 rose 1.6%, the EURO STOXX 50 gained 0.1%, while the MSCI Emerging Markets Index is up 4.3% so far in 2018. The energy sector outperformed on strengthening oil prices - FUEL was the top performing unleveraged equity fund for the week. The Australian dollar continued its advance, moving above US79c. Most other majors also strengthened against the US dollar, with US jobs data missing expectations on Friday. The euro is now trading at three-year highs against the US dollar. Oil prices moved to a three-year high above US$64/bbl. BetaShares Crude Oil Index ETF (OOO) was the top performing fund for the week. Precious metals also performed strongly, with gold up 1.4% and palladium continued its long-term trend upwards. The Australian ETF market saw inflows of A$68m and outflows of A$29m from domestically domiciled ETFs last week. The largest inflows were into cash and fixed income funds (AAA, QPON and PLUS) and domestic equity funds (MVW and STW), while the largest outflows were from the domestic financial sector (QFN).