Weekly Market Monitor - Week Ending 9 June 2023

• Carbon allowance ETFs (GCO2, XCO2) topped the performance charts last week after a recent assessment of global government policies on greenhouse gasses revealed that 90% of net-zero plans by a group of 36 countries are unlikely to be achieved, according to Bloomberg. Laggards include India, Australia, Brazil, and the UAE. Failure to meet global net-zero targets would mean harsher carbon allowance policies must be enforced, driving up their potential value.
• Crypto ETFs (CRYP, EBTC, EETH) were among the poorest performers after the US Securities and Exchange Commission (SEC) sued two industry leading exchanges, Binance and Coinbase, for operating as unlicensed securities exchanges. After the dramatic collapse of FTX in late 2022, the SEC has repeatedly probed the crypto industry, leaving investors uncertain about the future of the space.
• There were $248.1 million in reported industry inflows last week, the majority of which could be attributed to bond and cash income ETFs (BILL, IAF, QPON, SUBD, USTB).
• There were $298.1 million in reported outflows last week, marking only the second time this year that the Australian ETF industry has lost ground over a one-week period.
• Broad-base index tracking funds (A200, IOZ, IVV, STW, VAS, VGS) were the top traded funds for the week as usual.

Download our weekly ETF monitor here.