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Weekly ETF Monitor for week ending 12 June 2020

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Jun 16, 2020

This week's highlights Equity markets mostly declined last week, with second-wave fears and cautious Fed comments halting the rally. Bearish funds (BBUS, BBOZ and BEAR) were amongst the top performers, while technology-related companies in China (CNEW) and the US (FANG) outperformed. Global energy companies (FUEL), banks (BNKS) and US small-and mid-cap companies (IJR and IJH) were amongst the poorest performers. Precious metals all rallied strongly last week. GOLD returned 5.1% for the week, while the diversified ETFS Physical Precious Metals Basket (ETPMPM) returned 3.8%. Gold miner (GDX) was also amongst the top performers. Oil declined, with OOO returning -7.8%. Total flows into domestically domiciled ETFs were $285m, while outflows totalled just $14m. Domestic cash fund AAA saw the biggest inflows for the week, followed by IOZ. Consumer staples fund IXI saw the largest outflows. Bearish fund BBOZ was the most traded fund for the week, followed by domestic equity fund VAS. GOLD and OOO saw above average volumes. ETFS FANG+ ETF (FANG), which invests in 10 of the world’s largest technology and technology-enabled companies, returned 2.4% for the week. FANG+ stocks, including Apple, Amazon, Netflix and Google have shown resilience in turbulent markets this year. Year-to-date the NYSE FANG+ Index, which FANG aims to track, has outperformed the broader S&P 500 by more than 30%.

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Weekly ETF Monitor for week ending 5 June 2020

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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.

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Clean energy in your clients’ portfolios

Jun 10, 2020

Battery technology investments could be the answer for clients with an interest in the environment and a desire to incorporate this within their portfolios. Renewable energy and electric cars are set to take over fossil fuels as a source of energy in coming decades, but to do so, battery technology and storage will be critical. Renewables and battery technology Renewable energy, namely solar and wind power, are intermittent power sources. To rely on these is to require reliable energy storage in the form of batteries. Likewise, electric cars are completely dependent on battery storage to operate. The South Australian Hornsdale Power Reserve is the largest example in the world of battery storage for renewable energy, making Australia one of the leaders (surprisingly, given our coal industry) in transformation. Wind and solar energy are forecast to supply around 48% of world electricity needs by 2050, with battery technology, gas peakers (turbines or engines that burn natural gas) and dynamic demand anticipated to drive market penetration of solar and wind by more than 80% according to BloombergNEF[1] . To accommodate this growth, utility scale battery energy storage capacity is expected to more than double by 2022, while the market for battery technology is anticipated to reach $90bn by 2025, growing more than 12%[2][3] . How to invest in 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. There are a range of ways to access battery technology in your clients’ portfolios. Direct shares in value chain component companies with the bulk of their revenue related to this area, such as mining companies like Pilbara Minerals or battery manufacturers. Direct shares in broader companies which still include exposure to battery technology, such as Panasonic. Managed funds, either active options or ETFs such as ETFS Battery Tech & Lithium ETF (ASX code: ACDC) which offer exposure across the industry. For more information about ETFS Battery Tech & Lithium ETF (ASX code: ACDC) or investing in battery technology for your clients, please contact us. Sales Trading Phone +61 2 8311 3488 Email: sales@etfsecurities.com.au Phone +61 2 8311 3483 Email: primarymarkets@etfsecurities.com.au This document is communicated by ETFS Management (AUS) Limited (Australian Financial Services Licence Number 466778) (“ETFS”). This document may not be reproduced, distributed or published [1] https://about.bnef.com/new-energy-outlook/ [2] www.forbes.com/sites/mergermarket/2020/02/18/the-future-of-battery-energy-storage-is-upon-us/#d5b173d4a185/ [3] www.mordorintelligence.com/industry-reports/global-battery-market-industry/

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Powering the future: investing in battery technology

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[1]. 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%[2][3]. 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

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Weekly ETF Monitor for week ending 29 May 2020

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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.

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Webinar Recording: Gold - A Precious Metal for Portfolios, 2020

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.

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