Market Moves: Week Ending 10 January 2025

  • Short US Equity funds (BBUS, SNAS) were the top performers of the week after a blowout jobs report reignited inflation fears and reinforced bets that the Federal Reserve will cut rates by less than expected this year.1 A tight labour market can lead to accelerated wage growth which increases company costs and promote consumer spending – both of which can be inflationary.
  • Cryptocurrency ETFs (CRYP, EETH, IETH) were the poorest-performing assets of the week. Investors re-evaluated their risk-on exposures on reduced odds of rate cuts in 2025.2 Higher for longer interest rates tend to be negative for cryptocurrencies. A stronger dollar can lead to reduced demand from global buyers, while higher interest rates increase borrowing costs and lower liquidity.
  • There were $1.1 billion in reported inflows for the week and $142.0 million in outflows, marking a week of net inflows for the Australian ETF industry.

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Looking for more ETF Express content? Check out this week’s Thematic Spotlight and Commodity Calls.