Weekly Market Monitor – Week Ending 3 February 2023

  • Tech-related ETFs (FANG, TECH, SEMILNAS) dominated the top performers’ chart last week as markets rallied on an expected 25bps rate hike. Investors are returning to tech and growth stocks, betting that the Fed tightening is near its peak. Carbon credit ETFs (GCO2, XCO2) also climbed as energy companies braced for colder weather forecasted to be hitting Europe.
  • Crude oil (OOO) was the poorest performing, non-leveraged asset last week due to fears of over-supply as Russian exports remained robust despite EU sanctions and US crude inventory jumped much higher than expected. Gold mining ETFs (MNRS, GDX) were also poor performers, as gold itself experienced a difficult period of price pressure.
  • There were $258.3 million in reported inflows last week, with AUD income ETFs (AAA, SUBD, FLOT) taking a larger share of inflows compared with the 12 month average. This perhaps shows that investors feel yields are becoming more attractive.
  • There were $58.3 million in reported outflows last week, marking yet another week of positive net flows for the industry. Almost half of these outflows were accounted for by one ETF (IOZ).
  • The top traded funds for the week were large vanilla index trackers (VAS, IOZ, STW, VGS, IVV) as usual.

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