Weekly Market Monitor – Week Ending 26 May 2023

  • Technology and AI-adjacent ETFs (SEMI, FANG, ASIA, CLDD, HACK, HYGG, LNAS, LPGD, NDQ) dominated last week as Nvidia’s record breaking earnings kickstarted yet another AI-related investing frenzy. After a swift 30% increase in market capitalisation over the US long weekend, Nvidia is now the sixth member of an exclusive club of companies worth more than a trillion dollars.
  • Carbon allowance ETFs (GCO2, XCO2) were the poorest performing non-leveraged funds last week as the European Parliament failed to come to an agreement on limiting greenhouse gas emissions from industrials, undermining the Industrial Emissions Directive (IED) proposed to help achieve decarbonisation.
  • There were $500.6 million in reported industry inflows last week, the majority of which could be attributed to broad-based index funds (A200, IOZ, IVV). US Treasury bonds (USTB) also enjoyed significant inflows, as US debt ceiling discussions looked to reach an outcome.
  • There were only $137.3 million in reported outflows, marking yet another big week of net inflows for the Australian ETF industry.
  • As usual, broad-base index tracking ETFs (IOZ, IVV, NDQ, STW, VAS, VGS) were the top traded funds for the week.

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