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Investors may be feeling a cautious sense of optimism as we enter 2021 with global vaccine rollouts. Last year, technology companies and commodities were investment winners, so what will 2021 hold for investment markets? There are three trends we see influencing ETF investments in 2021: the movement to value, thematic investing and short & leveraged investing. Download the complete paper here Movement to value As news of vaccines hit markets in late 2020, investors started to shift their approach away from a pure growth focus and towards value investments such as banks and industrials. ...
This week's highlights Markets came off slightly last week from fresh highs. Small caps, low volatility and biotechnology all performed well over the week. iShares Core S&P SmallCap ETF (IJR) was up 2.9%, ETFS S&P 500 High Yield Low Volatility ETF (ZYUS) up 2.6% and ETFS S&P Biotech ETF (CURE) up 2.5%. The worst performers over the week were gold miners, with BetaShares Global Gold Miners ETF (Hedged) (MNRS) was down 5.4%. Net inflows for the week were A$236m. iShares S&P/ASX 200 ETF (IOZ) had the biggest inflows of A$60.2m, while ETFS Physical Gold (GOLD) had A$26.7m. The biggest outflows were seen in BetaShares Australian High Interest Cash ETF (AAA) totalling A$33.9m. The most-traded ETFs over the week were Vanguard Australian Shares Index ETF (VAS), BetaShares Australian High Interest Cash ETF (AAA) and BetaShares NASDAQ 100 (NDQ). ETFS Battery Tech & Lithium ETF (ACDC) continues to remain the best 12 month performer up 64.4%. ...
This week's highlights: As the electric vehicle revolution gains more momentum, Battery Technology and Miners soared. ETFS Battery Tech & Lithium ETF (ACDC) was up 9% and BetaShares Global Energy Companies ETF (Hedged) (FUEL) up 8.8%. Global real estate and Australian Tech had a poor week. SPDR Dow Jones Global Real Estate Fund (DJRE) was down 2.6% and BetaShares S&P/ASX Australian Technology ETF (ATEC) down 2.3% Australian domiciled products maintained strong inflows of A$268m over the week. Beta domestic equity products and Global Tech saw most of the inflows. iShares S&P/ASX 200 ETF (IOZ) had A$32.4m of inflows for the week and SPDR S&P/ASX 200 Financials ex A-REITS Fund (OZF) A$14.1m of outflows. The start of 2021 has continued a strong rebound in equity markets as investors continue to support emerging megatrends such as Battery Technology and Lithium. ETF Securities’ ETFS Battery Tech & Lithium ETF (ACDC) is up 71% over 12 months. Currently the best performing Australian listed ETF. ...
This week's highlights Precious metal silver, gold miners and oil posted strong gains last week as markets remained near all time highs. ETFS Physical Silver (ETPMAG) was the best performer over the week up 7.3%. BetaShares Global Gold Miners ETF (Hedged) (MNRS) surged 5.9% and BetaShares Crude Oil Index ETF - Ccy Hedged (OOO) was also up 5.3%. The Aussie dollar continued to strengthen and broke through US 76 cents. BetaShares Strong US Dollar Hedge Fund (YANK) was one of the worst performers down 2.9%. Australian domiciled products maintained strong inflows of A$206m over the week. Global equity products saw most of the inflows as investors steered away from cash products. VanEck Vectors MSCI World Ex-Australia Quality ETF (QUAL) had A$42m of inflows for the week and BetaShares Australian High Interest Cash ETF (AAA) had A$55m of outflows. This year has seen large inflows into ETFS Physical Gold (GOLD) as investors look for diversification and protection amongst a canvas of uncertainty. ETF Securities offers Gold, Silver, Platinum and Palladium physically backed products enabling efficient and cost effective exposure. Gold’s more volatile sibling Silver remains the best YTD performers of the precious metals up 31.5%. ...
This week's highlights ETFS S&P Biotech ETF (CURE) was the top-performing unleveraged fund last week as COVID-19 vaccine rollouts commenced. Domestic resource sector funds (OZR and QRE) were also amongst the top performers. China-related funds CNEW, CETF and IZZ were the poorest performing equity funds, while UK and European funds F100 and ESTX also saw negative weeks. Precious metals declined last week with gold (GOLD), which dropped 1.4%, being the best performer. Platinum fund ETPMPT dropped 6.1% and was the week’s overall poorest performing ETF. Pound sterling fund POU was also amongst the worst performers as Brexit concerns escalated. Total reported flows into domestically domiciled ETFs were $449m, while outflows totalled $26m. Domestic equity funds STW and IOZ saw the biggest inflows for the week, followed by currency hedged S&P 500 fund IHVV and a range of other, mostly equity, funds. Short equity funds BBOZ, BEAR and BBUS saw the bulk of the week’s outflows. VAS was the most traded fund for the week, followed by IOZ and STW. IHVV and FAIR saw above average volumes. ...
India’s star is on the rise and if you are considering an emerging markets exposure for your clients’ portfolios, it may be time to revisit India. Global challenges may just be a temporary setback for India, which is forging ahead with growth plans and many nations, including Australia, are seeking to forge closer trade partnerships. Like the broader Asian region is typically attractive to investors in emerging markets, India also benefits from the growth case of a well-documented growing middle-class and economic prospects. Recovering from the global pandemic The COVID-19 pandemic has been significant globally, not just from a health perspective but also economically. India was initially hard-hit, implementing one of the harshest and most extensive lockdowns globally1. Cases appear to have peaked in India in September and there are now signs of economic recovery as seen in indicators such as industrial output and energy consumption2. The Indian government has returned its efforts to the future growth of the nation, with key emphasis on its existing plans for infrastructure. Three key growth drivers A large and diverse nation, both in population and in region, India’s future is dominated by three key growth drivers. ...