Welcome to Issue 19 of Exchange Traded Fridays for the week ending 26th November 2021. In this week's local news we see the rise of active ETFs, getting an understanding of what to look for when you dig into ETFs as well as the weekly updated from ETF Securities. Globally, there was news on short ARK ETFs and what's happening with the work from home trend and a piece on tokenisation. In this week's education we highlight an old but great piece from Bloomberg on the history of ETFs from origin to their place in the markets today.
WATCH - You can watch this episode on YouTube here: https://www.youtube.com/watch?v=ZPWlw3DfemQ&ab_channel=ETFtracker
LISTEN - Also available on Spotify: https://open.spotify.com/episode/61knqd0sKTEjBJ8HhN06sL and our podcast player on the website menu above.
What's in this newsletter?
Local ETF Articles
Global ETF Articles
Tweet of the week
Chart of the week
ETFtracker App Links
Listen or Watch
Articles - Local
FNArena - SMSFundamentals: Active Managers Switch To ETFs - In this article we see that actively managed ETFs have seen an increase of 26% over the last 12 months according to research by John Dyall at Rainmaker Group. It highlights how actively managed international equity products have grown from just being $3.7 billion in September 2020 to $20.5 billion (over 16% of the total market). These local insights as well as international ones are all in the article.
Livewire Markets - Know what's in your ETF - In this article, Max Pacella from Mason Stevens digs under the hood with some analogies to add to the list that we already work with when it comes to ETFs. He highlights how it is good to know what you own and how what's on the label may not be what's inside the ETF as well as what to look out for when it comes to leveraged ETFs.
ETF Securities - Weekly Report - w/e 19th November - Per ETF Securities section on inflows: "Total reported flows into domestically domiciled ETFs were $296m, while outflows totalled $135m. The largest inflows for the week were into global value fund VLUE, crypto-equity fund CRYP and global quality fund QUAL. Battery tech fund ACDC and hydrogen fund HGEN also saw strong flows for the week. The week's largest outflows were from cash fund AAA."
Articles - Global
ETF Trends - Tokenize Everything - We've featured Dave Nadig and his ETF Trends channel before in terms of posts or podcasts he has done but we recently discovered that he's also got a crypto focused part of this ETF website. Having a look at this latest article and we see something interesting with regards to how ETFs work and a new crypto concept called Token Sets which are like baskets of cryptocurrencies you can purchase just like ETFs. There's a lot more to learn in terms of things like what is a DAO and how this can move towards proper asset management so check out this article and more in the series.
Financial Times - ‘Work from home’ ETFs diverge as investors bet on reopening - In this article from the FT we see that 2 ETFs focused on work from home (WFH, and IWFH) have seen vastly different performances this year. WFH has gone up 58% whilst IWFH is only up 4% since debut. As expected, the difference is in their holdings. For example, IWFH has Netflix, Peloton and Spotify whilst WFH does not and those companies have not performed well. This shows the importance of looking under the hood for the ETF holdings and not just buying based on ETF name alone.
Bloomberg - Anti ARK ETF Shines as Spiking Yiellds Drag Down Expensive Tech - Highlighting the positive move in anti-ARK sentiment this week with the launch of the Tuttle Capital Short Innovation ETF (SARK) which has been well-timed in its launch. ARK Invest's ARKK had been a solid performer in 2020 with +150% gains but have not done well since then.
ETF Securities - What's Next for Robotics and AI - In this interview, Gemma Weeks from ETF Securities has a chat with Jeremie Capron from the index provider behind their ROBO ETF. If you're interested in learning more about the underlying index, the portfolio of companies in the index and more about the team behind this index then this is definitely worth a look. 19mins
ausbiz - Is Europe the ugly duckling of the investing world? - 24th November 2021 - Per the show notes "While there is a lot of interest in Europe, Asia and the tech trade in the US when it comes to investing, what about Europe? Ganesh Balendran from ETF Securities has dubbed the region the next investment destination in 2022 and should be top of mind for investor portfolios." 6mins
ausbiz - Talking the tech trade into 2022 - 23rd November 2021 - In this episoe, Blair Modica from BetaShares chats about technology and thematic ETFs and how the growth/explosion in them has been seen here as well as overseas with various metaverse and bitcoin type ETFs and the crypto/bitcoin ETFs here. 5mins
ausbiz - Asset managers embrace the cypto world - 22nd November 2021 - In this episode, Scutty and Annette chat with Irfan Ahmed of State Street and the differences between traditional and crypto ETFs. They highlight direct and indirect exposure is available for the crypto space and the innovation in thinking that is coming from bitcoin ETF talks here in Australia.
ausbiz - A listed way to invest in unlisted markets - 22nd November 2021 - per the show notes "Attention anyone who is looking to invest in private equity but doesn’t know where to start? VanEck may have something worth considering for the portfolio. For the first time in Australia, it is going to launch a Global Listed Private Equity ETF, providing access fund managers who specialise in private markets along with direct investments. John Caulfield from VanEck says the ETF will track the LPX50, an index that includes 50 listed private equity companies who invest in venture, growth and buy-out opportunities." 6mins
ausbiz - Embracing gold and the metaverse - 19th November 2021 - per the show notes "It's the end of the week and that prompts James Whelan from VFS Group to ensure his portfolio maintains its diversity. To that end he's adding gold as the precious metal price climbs on the back of rising inflation concerns. Rather than buy the physical assets or individual gold stocks, James is looking at the Global Gold miners ETF (MNRS) that he says has slowly been coming back from the dead." 7mins
ausbiz - Scott Phillips on ETFs, finfluencers and why he bought Fortescue Metals - 19th November 2021 - In this video, Scott from the Motley Fool talks about how investors need to look under the hood with ETFs and to treat them as you would do with a normal stock investment. Look under the hood. This and more talk on finfluencers and what to look out for with them in this video. 11mins
ausbiz - Everything ETF: $10T global AUM and counting - 18th November 2021 - per the show notes "State Street Global Advisors' Australian head of investment strategy and research gets us across ETF flows, trends and challenges as we head towards the end of the year. Raf talks fixed income exposure, property plays and where the greatest growth will happen in 2022."
Podcasts First Look ETF - Exploring New ETFs investing in Bitcoin, Frontier Markets and ESG Themes - 18th November 2021 - In this episode of First Look ETF (sponsored by the NYSE), host Stephanie Stanton explores new ETFs that invest in frontier markets (FMQQ), bitcoin (BITO) and thematic ESG strategies (CLNR, EQUL, HART, OCEN). Her guests include Douglas Yones, ChFC, Head of Exchange Traded Products at NYSE, Kevin T. Carter, Founder & Chief Investment Officer of the EMQQ and FMQQ ETFs, Simeon Hyman, CFA, Head of Investment Strategy at ProShares and
Wendy Wong, Head of Sustainable Investment Partnerships, New York Life Investments. 21mins
CNBC - ETF Edge - Scwab's New ETF & Bitcoin ETF Pitfalls - per the show notes "CNBC's Leslie Picker spoke with Tom Lydon, CEO of ETF Trends, David Botset, Head of Equity Product and Strategy at Schwab Asset Management, and Dave Abner, Head of Business Development at Gemini. They discussed the cyclical trade as the reopening story loses steam … how do investors set up ahead of the holiday season? Plus, two of the ETF community’s favorite themes – ESG and crypto – and why one guest actually thinks a pureplay bitcoin ETF could be just around the corner" 17mins
Tweet of the week
In this week's tweet highlight we show asiaMarkets.com and thier list of the top 10 new ETFs based on assets under management so far. Whilst BITO (Bitcoin Futures ETF) had a strong start, it's behing the NUGO (Nuveen Growth Opportunities ETF) which had a bit more of a headstart. See the tweet here for the full list - https://twitter.com/asia_markets/status/1462733780397879301
Chart of the Week For the ARK or anti-ARK investors out there comes this chart from Mike Akins of ETF Action. In a tweet he highlighted the performance of SARK (the anti-ARK ETF) since it launched. Tweet here: https://twitter.com/etfAction/status/1463522654321885188
Further ETF Education
Taking things a step back to the full story of how ETFs got started is this series from Bloomberg. It's a 6 part series that we referred to in one of our earliest articles for this website late last year and we revisit it so that viewers can get this great content too. From the initial plans to the approvals needed (and how long that took) the journey of ETFs has been an amazing one so check this out.
Access the ETFtracker App
Access to the newest version of the ETFtracker app is here: https://www.etftracker.com.au/the-app
ETFtracker Forum and ETF Investing Australia 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
Over the last few weeks we've also been getting morer involved in the Facebook group/forum space and whilst we're often seen commenting on Equity Mates discussion group and others we're also helping to run a newly formed and fast growing one called ETF Investing Australia. Set up a few months ago by Chad Maurer, this group is specifically focused on Australian ETFs so if you're interested in joining a group like this to learn more about ETFs, follow the link here: https://www.facebook.com/groups/3010730665825769
ETFtracker 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.
You can also access the podcast directly on our website here: https://www.etftracker.com.au/podcasts
If you're interested in financial news you should check out ausbiz (sign up HERE) which has so much FREE financial and business content that comes out every day and has made it easier to follow your favourite topics and market experts. We get to feature on there and you can check out our page (and give us a follow) here: https://www.ausbiz.com.au/expert/mark-monfort?expertID=179