Exchange Traded Fridays - Issue 10 - 24th September 2021

Welcome to Issue 10 of Exchange Traded Fridays for the week ending 24th September 2021 and its another week of releases This week in local news we saw the announcement of a couple of new ETFs as well as the weekly performance insights from ETF Securities. Globally, there was more on having a good ticker code, the pace of the ETF revolution and a piece on active fixed income. What's in this newsletter?

  • Local ETF Articles

  • Global ETF Articles

  • ETF Videos

  • ETF Podcasts

  • Tweet of the week - Shares for Beginners

  • Chart of the week - Visual Capitalist

  • ETF Education - VanEck

  • ETFtracker App Updates

  • ETFtracker Forum

  • Listen or Watch


Articles - Local Money Management – Loomis Sayles launches active ETF – New launch with the global equity fund of Loomis Sayles. Per the article “the ticker will be LSGE and will list on the ASX. The $144 million Loomis Sayles Global Equity fund had returned 28.8% over one year to 31 August, according to FE Analytics, versus returns of 30.4% by the global equity sector within the Australian Core Strategies universe.” DAINTREE HYBRID OPPORTUNITIES FUND (MANAGED FUND) (ASX: DHOF) - Details about a new fund from Daintree, their hybrid opportunities fund which will be distributed as part of Daintree as well as eInvest who already have a series of active ETFs. ETF Securities - Weekly Monitor - w/e 17th September - per the report "Markets retreated last week on the back of fears from China’s Evergrande Group and free fall in iron ore prices. This caused an increased demand for the US Dollar and it strengthened against the G8. The best performers for the week were BetaShares Crude Oil Index ETF - Ccy Hedged (OOO) up 3.4% and BetaShares Strong US Dollar Hedge Fund (YANK) up 2.7%.". Below is the Trading Volume per the report.


Articles - Global Bloomberg - BROS, BETZ and DNA: The Race to Claim a Good Ticker and Attract Investors - In light of another article on ticker names we mentioned a few weeks ago (see Hunt for Hottest Tickers Creates a New Gray Market on Wall Street) we wanted to highlight this one which also look at memorable tickers, in this case for equities not just ETFs. This article goes through ticker philosophy and the importance of picking a good ticker and things to watch out for. The National News - Is the ETF revolution coming to an end? Article from the US looking at whether ETFs are too much of a good thing? This article poses that question as to whether ETFs have gone too far especially as there’s been low interest rates and government stimulus. As per the article “Another concern is that ETFs may have contributed to madcap market growth by throwing investor funds at the market’s big winners, especially big US tech companies.” They also talk about issues in throwing money at passive index tracking investments leading to inefficiency “That’s because most ETFs pick stocks purely on market cap. They do not reward superior profitability, return on equity or capital efficiency”. More questions in the article. Nasdaq - Investors Keep Turning to Active Fixed Income ETFs – Interesting as we had an active fixed income ETF specialist on our Interviews with Experts show this week (see here). As per this US focused article, “Actively managed fixed income U.S. listed ETFs have gathered a 17% share of category net inflows thus far in 2021, despite active ETFs overall managing just 4% of industry assets.” It also shows more details with charts tracking active ETF growth and the effect on bond ETFs.

Videos First up are a couple of videos in our ETF Analysis series on YouTube as well as Instagram (@ETFtracker) and Twitter (@ETFtrackerAU) . These show how we use our apps to do some quickfire analysis on various topics like


ausbiz - 21st September - Three minutes, one great investable idea - The rise of cyber crime has been detailed in a report by the Federal Cybersecurity Centre. Blair Modica from BetaShares talks about how investors can play into that theme via ETFs (they have HACK) and how cybersecurity is a growing industry expected to get to $250 billion by the end of the year too so the opportunity is there. 3mins ausbiz – 20th September - eInvest's newest and greatest ESG-friendly idea - in this episode Emilie O’Neill of eInvest shares with us some tips on identifying the next great ESG-friendly superstar for your portfolio. Today, she's nominated Calix (CXL). 5mins ausbiz - 17th September - The turning point for sustainability ETFs - per ausbiz "2020 was the turning point for ESG and green ETFs, according to James Kingston from iShares. James says there are now $120b in green-friendly exchange traded funds worldwide - a sign the trend is not just a mini blip." 5mins ausbiz - 16th September - 3 ETF's to take advantage of a surge in Japanese equities - Per ausbiz "Andrew Wielandt from DP Wealth Advisory joins ausbiz to discuss the recent rise in Japanese equity markets. Japanese equities were steady for the last 12 months (up 13%) vs US (up 35%) but they have been on a tear over the past two weeks, says Andrew." 6mins The Compound - There's too much money and it's ruining everything | What Are Your Thoughts? - In this episode between Mike and Josh, they go through Evergrande, the SPAC asset class looking like its done and a bit at the end that can relate to ETF investors too when they talk about stocks vs passive funds. 49mins "The Market Will Never Go Down Again" | The Compound and Friends #15 - In this episode they bring in Haley Sacks and Dan Nathan and chat about how much steam has been behind this bull market and whether we’ve seen this kind of thing before (we have). Definitely some bearish sentiment here. Additionally, they talk about Robinhood in choice between that stock and Uber and what each panellist prefers. An interesting quip from this part of the show is the thought that Robinhood has done more for sports betting than we could have imagined because when sports betting first went away and all these customers got into trading for the first time, the Draft Kings type apps all had to step up and provide even more services to a customer base now expecting in-game options to trade on and more. 36mins

Podcasts Morningstar Investing Compass - A deep dive into ETFs (Part II) - 2nd part of the ETF series from Shani and Mark looking at what drives performance in this asset class. Check out part 1 on their podcast as well. ETF Edge - Navigating the Global Slowdown - per the show notes "CNBC's Bob Pisani spoke with Arne Noack, Head of Systematic Investment Solutions at DWS Group and Dan Wiener, Chairman of Adviser Investment and editor of The Independent Adviser for Vanguard Investors." They discussed the factors fuelling the sharp moves lower and they also discuss Evergrande. 24mins The ETFtracker Show - Interviews with Experts - Episode 6 - The Fixed Income Specialist - This week we spoke with Matthew Holberton of Fidante and learned more about fixed income ETFs and how they fit into ETF portfolios. Fun fact, they're not as well traded as equity ETFs but the bond market is far bigger than the equity markets. 34mins



Tweet of the week

This week we highlight the Shares for Beginners show and host Phil Muscatello who had founder of Superhero, John Winters on board for the latest episode. See the link in the podcast section above but follow Phil on Twitter for more of his posts. https://twitter.com/phil_muscatello/status/1440531591097294849




Chart(s) of the Week

This weeks chart of the week is actually an infographic created by Visual Capitalist. If you aren't already familiar with their work, they do amazing infographics on all sorts of topics. This one is a bit old but goes through what is an ETF, what types and more on the history. Check it out here: https://www.visualcapitalist.com/what-is-an-etf/



Further ETF Education

MOAT Investing with VanEck - In this article from the VanEck learning hub the team goes through the various sources of economic moats as identified by modelling provided by Morningstar and the ETFs that can leverage these.


ETFtracker Resources Access the ETFtracker Apps


ETFtracker Forum If you're not already a member of the ETFtracker Forum then please sign up - you can access conversations and share ideas amongst peers for free. Sign up is free: https://www.etftracker.com.au/forum

Podcast and Videos Before we go further, if you'd prefer to consume all this content in more convenient forms of media, we've launched The ETFtracker Show as a podcast and video and Exchange Traded Fridays comes at the end of each week. Additionally, we've launched a series of interviews with various ETF market participants.

  • YouTube: https://www.youtube.com/channel/UCT6D4YStNQP-9eeXetCStKQ

  • Spotify: https://open.spotify.com/show/2FU76nbk1QAgPxzMkLBPa0

You can also access the podcast directly on our website here: https://www.etftracker.com.au/podcasts



Watch us on ausbiz

If you missed our previous newsletters you might not have seen the latest ausbiz updates which mean you can now follow your favourite experts so if you want to ETF updates from ETFtracker (and others) then sign up here: https://www.ausbiz.com.au/?rh_ref=markd1d0

Once you've joined you can go to my page and add me to your watchlist too: https://www.ausbiz.com.au/expert/mark-monfort?expertID=179


ETFtracker Socials - YouTube, Spotify, Instagram, Twitter, TikTok

We're on a few platforms (some more than others) so look up ETFtracker on your favourite platform for more.


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