Weekly Market Monitor – Week Ending 30 September 2022

• Crypto and gold mining ETFs were the best performers last week, boosted by rising gold and bitcoin prices. Gold miners (GDX, MNRS) are geared to the gold price, as the gold price determines their profitability. Their share prices typically rise more than the spot bullion during bull runs but ultimately falling more than spot bullion during bear runs.
• The Global X 21Shares Bitcoin ETF (EBTC) was the top performer as the bitcoin price experienced a bounce. The cavalcade of blockchain ETFs was not far behind, with EETH, DIGA and CRYP all breaking into the top 10 performers as well.
• Infrastructure ETFs featured prominently among the poorest performers. Given they are highly regulated with reliable cash flows, infrastructure companies are usually less volatile. Their underperformance last week perhaps owes to their exposure to electrical utilities companies, which have been hurt by Hurricane Ian damaging Florida’s grid.
• There was roughly $402 million in reported inflows. ETFs that benefit from rising interest rates – such as AAA and QPON – were the biggest winners as central banks around the world chase inflation prints higher.
• There was $478 million in reported outflows, meaning the industry saw a net outflow week. iShares accounted for the bulk of these, perhaps owing to an institutional seller.
• The top traded ETFs for the week looked somewhat different than usual. Thanks to outflows, IESG, IHWL made rare appearances in the top-most traded. Meanwhile the Global X Ultra Short Nasdaq 100 Hedge Fund (SNAS) continued its march up the topmost traded, coming a narrow fifth.

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