Weekly Market Monitor – Week Ending 21 April 2023

  • Platinum group metals or PGMs (ETPMPD, ETPMPT) were standout performers last week as China’s GDP surprised, growing 4.5% in the first three months of the year. PGMs are industrial metals, used in many new technologies such as fuel cells and solar panels, and are critical in the construction of catalytic converters for non-electric automobiles. Chinese demand is a key driver in PGM prices, so a strong economic recovery in the region could see investors maintain a healthy appetite for PGM ETFs.
  • Crypto ETFs (CRYP, EBTC, EETH) ended their hot-streak and underperformed last week. Investors are taking profits after a blazing run over the past few months, while US regulators are also continuing to pressure the industry. Recent SEC proposals indicate stronger regulation toward decentralised finance.
  • There were $214.2 million in reported industry inflows for the week. Bond and income ETFs (IAF, QPON, USTB, BILL) remain investor favourites, indicating preference for yield over equities is still strong.
  • There were $127.4 million in reported outflows, marking yet another week of net inflows for the Australian ETF industry.
  • Large index trackers (IOZ, VAS, VGS, IVV) were responsible for the majority of trading volumes as usual.

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