Weekly Market Monitor – Week Ending 17 March 2023

  • Crypto and precious metals ETFs were the best performers last week, with the Global X 21Shares Bitcoin ETF (EBTC) coming in first. As the global banking system creaked, traders turned to gold, silver, bitcoin and ethereum as a hedge against systemic risk—driving a broad rally in these sectors.
  • Carbon and oil ETFs were the worst performers (OOO, FUEL, GCO2, XCO2). The oil price fell last week, hit by contagion fears around Credit Suisse and oversupply.
  • There was $472 million in industry inflows last week. Cash ETFs, which benefit when interest rates rise, accounted for one third of them (ISEC, AAA). While core bond ETFs, which are trading on their highest yields in years, (USTB, GBND, FLOT) accounted for much of the rest of them.
  • There was $217 million in outflows, meaning the industry saw another net inflow week. Inverse funds – which attempt to profit when share markets fall by short selling futures – made up for a sizeable chunk of these (BBOZ, BBUS). This suggests Australian investors are dialling down on future direction of markets.
  • Trading volumes centred around the usually suspects with VAS spending another week as the most traded ETF in Australia.

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