Weekly Market Monitor – Week Ending 16 December 2022

  • Inverse funds (SNAS, BBUS, BBOZ) dominated the top performers list once again last week as US stocks underperformed. Investors which bet on a dovish fed in 2023 were taken by surprise as the Fed showed surprising conviction to a higher-than-expected interest rate peak.
  • Transition Metals and Commodity ETFs (ETPMPD, XMET, GMTL, MVR) were the theme in last week’s bottom performers. Commodities tend to perform worse in a recession as business demand falls alongside economic slowdowns. Investors are betting on a rough 2023 economic outlook given US Federal Reserve’s hawkish signals.
  • There were $326.21 million in reported inflows, with AUD-income oriented ETFs (AAA, IGB, USTB, YMAX) taking the majority of winnings. Investors are looking positively upon the Australian dollar with eight of the Top 10 inflows going into AUD-hedged or Australian equity ETFs.
  • There were $86.14 million in reported outflows, marking yet another week of positive flows for the industry.
  • The top traded ETFs for the week featured large ASX trackers (VAS, IOZ) as usual. Leveraged and inverse funds (LNAS, BBOZ, BBUS) made strong showings in the turnover leader board, a sign that these funds are becoming more and more commonly used as trading tools during times of volatility.

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