Equity markets sold off last week on US political uncertainty with election polls narrowing dramatically (see Chart of the Week). The S&P/ASX 200 ended the week down 2%. The S&P 500 lost 1.9% and as at Friday had declined for nine consecutive days – its worst losing streak since 1980. Top ETF performers for the week were bearish equity funds, gold and gold miners.
Precious metals rallied in the risk-off environment, with gold up 2.3% and silver gaining 3.9%. WTI crude gave up some of its recent gains, dropping 9.5% to close just above US$44/bbl.
The Australian dollar gained 1%, pushing back towards US 77c heading into the weekend. Pound sterling had its best post-Brexit week, gaining 2.7% against the US dollar following the High Court ruling that a Parliamentary vote is required to kick-off the Brexit process.
The Australian ETF market saw total inflows of A$46m and outflows of $139m from domestically domiciled ETFs. The biggest inflows for the week were into Australian dollar cash and the majority of outflows were from the SPDR S&P/ASX 200 Fund (STW).
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