Weekly Market Monitor – Week Ending 7 October 2022

  • Commodities and resources ETFs were the top performers last week, with eight of the top 10 having commodities or resources exposure. Oil ETFs – OOO, FUEL – were the standouts due to OPEC announcing its oil production cuts.
  • Inverse funds – which use short selling to bet against global or local share markets – featured heavily among the poorest performing (SNAS, BEAR, BBOZ, BBUS) due to the “bear market rally” that global stock markets enjoyed last week.
  • There were $422 million in reported inflows. Cash ETFs, which benefit from rising interest rates, continued to see interest (AAA, BILL). Currency hedged ETFs (QHAL, IFRA, QUA) were also among the biggest winners, suggesting some investors believe the Aussie dollar could rebound.
  • There were $204 million in reported outflows, meaning it was a net inflow week for the industry. International shares ETFs made up the bulk of outflows, perhaps signalling that investors believe that volatility will continue.
  • Inverse funds saw outsized trading volumes, making up four of the top 10 most traded ETFs. The Global X Ultra Short Nasdaq 100 Hedge Fund (SNAS) continued its rise up the list of most traded securities in Australia, coming in fifth for the week.

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