Weekly Market Monitor – Week Ending 14 April 2023

  • Crypto ETFs (CRYP, EETH, EBTC) stole the show last week as Ethereum completed its milestone Shanghai upgrade, and Bitcoin rallied above USD $30,000 for the first time in 10 months, thanks in part to traditional banking woes.
  • Energy transition metals and their miners (WIRE, XMET, GMTL) were also stand out performers last week as the G7 solidified their stance on the phasing out of all ‘unabated fossil fuels’. The G7 also reiterated the need for acceleration in renewable instalments. One reported plan in the works projects an increase of solar and offshore wind energy capacity by three to seven-fold by 2030, the construction of which would dramatically increase transitional metal demand.
  • Asia ETFs (ASIA, IZZ, IAA) were the theme across the poorest performers as investors hedged their China exposure in the lead up to crucial Q1 GDP figures. Short US and Australia equity funds (BBOZ, BEAR, BBUS) also lagged as global equities rose on positive sentiments surrounding a possible pause in rate hikes.
  • There were $230 million in reported industry inflows last week. iShares S&P/ASX 200 ETF (IOZ) dominated the chart, responsible for almost a quarter of the total, however it was Global X US Treasury Bond ETF (USTB) which surprised as the fund increased its then-almost $300 million AUM by more than 10% in a single day. The significant interest in US Treasuries indicate a swing in investor sentiment toward bond allocations as interest rates seemingly approach their peaks and yields are attractive.
  • There were $61.5 million in reported outflows, marking another week of continuous net inflows for the Australian ETF industry.
  • Large index-tracking ETFs (VAS, IOZ, VGS, VHY, STW) were responsible for the majority of ETF trading volumes as usual.

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