Weekly Market Monitor – Week Ending 27 January 2023

  • Growth and tech-related ETFs (FANG, DRIV, HYGG, HNDQ, ESPO, LNAS) were the top performers last week as US Q4 GDP figures beat forecasts, leading investors to think a ‘soft landing’ may be in the books as the FOMC prepares to downshift rate hikes. The Nasdaq 100, which measures the US tech sector, was on track for its best January since 1999.
  • India-focussed ETFs (IIND, NDIA) were hammered after renowned short seller, Hindenburg Research, accused Adani Group, India’s largest conglomerate, of “pulling the largest con in corporate history” including participation in “stock manipulation” and “fraud”. As of 31/01/2023, Adani Group had suffered losses of up to $68 Billion USD in valuation.
  • There were $193.1 million in reported inflows last week, with AUD income ETFs (AAA, AESG, FLOT, SUBD, BILL) dominating the field and taking in most winnings. Investors are feeling bullish on the Aussie dollar once more as it rallied against the USD, reaching 7-month highs.
  • There were $104.6 million in reported outflows last week, marking yet another week of positive net flows for the industry. Most of these outflows were accounted for by one ETF (A200).
  • The top traded funds for the week were large vanilla index trackers (A200, VAS, IOZ, VGS) as usual. Cash and Income ETFs (AAA, AESG) also made a strong showing.

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