Welcome to Issue 7 of Exchange Traded Fridays for the week ending 3rd September 2021. This week in local news we saw ESG funds top the lilst of flows from last week and some helpful insights on what to look for in an ESG fund from VanEck. Globally, there was an interesting article that is actually from last week (but it missed our Thursday cut-off) which was all about the grey market for ticker symbols and how that plays a role in marketing an ETF. We mentioned this last week but make sure you follow us on ausbiz and sign up to that financial news platform if you have not already. They make it easy to follow your favourite experts and topics: https://www.ausbiz.com.au/expert/mark-monfort?expertID=179 What's in this newsletter?
Articles - Local
Articles - Global
Tweet of the week
Chart of the week
ETFtracker App Updates
Listen or Watch
The Weekly Wrap Articles - Local VanEck - Three steps to finding an ESG fund - In this article the VanEck team show a couple of areas that investors should look at if they're interested in ESG investing using ETFs. From green washing to screening as well as the funds credentials, it's important to do your homework. AFR - Cathie Wood’s new ETF shuts out banking, fossil fuels and vice - talking about the new Ark Investment Management’s Transparency ETF and the type of things it screens out which includes alcohol, banking, gambling and oil and gas. AFR - Meet the seven-year-old investing in ETFs - ETFs really are for everyone and whether its Selfwealth as mentioned in this article, or others, its never too early to get started investing - imagine all that compound interest! Business Insider - Millennials are now the largest buyers of ETFs in Australia - highlighting that millennials represent almost half of all Australians investing in ETFs according to data from State Street. Easier access on trading apps and the rise of finfluencers, particularly females have helped spur this movement. Sydney Morning Herald - Opinion | Which global shares ETFs can you buy? Here’s a few options... - article going into detail on 3 global ly focused ETFs available on Australian exchanges including VGS (Vanguard MSCI Index International Shares ETF), WXOZ (SPDR S&P World ex-Australia ETF) and IOO (iShares Global 100 ETF). ETF Securities Weekly Monitor - Week Ending 27th August - ETHI led the way with $26m of inflows along with IESG which had $22m of inflows. The rest of the top performers were the main stalwarts of broad market ETFS (A200, STW, IVV, IOZ). ESG is definitely getting more love.
Articles - Global
Bloomberg - Hunt for Hottest Tickers Creates a New Gray Market on Wall Street - This one came out last week after the weekly wrap up went out but it's still one we think should be included. It's a great article from Bloomberg showing that the more memorable the ticker name the more likely it is to see success and inflows with investors. A good ticker name can be great for marketing but it's not necessarily the only thing an ETF Issuer needs to have.
ETF Database - 0201: ETFs vs Mutuals and Active vs. Passive | ‘The Switch’ with ARK Invest - In this article ETF Trends chats with ARK Invest and the demand for Active ETFs - this is available as an article as well as video.
Bloomberg - Traders Sour on Clean Energy as Bets Against Invesco ETF Surge - data showing that short bets against clean-energy ETFs is on the rise showing investors might be concerned about the ability for these ETFs to deliver. Buying opportunity or one to avoid?
Financial Times - ETF pioneer Grossman urges asset managers to adopt direct indexing - a look at the next innovations expected to come to the world of ETFs thanks to market structures enabling the low cost of access to building customised funds.
Videos ausbiz - How to profit from the seminconductor shortage - 1st September - Kanish Chugh from ETF Securities discusses the new semiconductor ETF they've launched called SEMI which had $5m traded on its first day. 6mins ausbiz - Tailwinds + tech = terrific reporting season results - 31st August - Cameron from BetaShares shows the inflows coming into tech focused ETFs especially after the great result from tech companies like Wisetech and Appen. 4mins ausbiz - Where the ETF investors made moves during reporting season - 30th August - In this episode, VanEck's Damon Gosen shows that 75% of flows into ETFs for August so far have gone to international equities. 4mins CNBC - ETF Edge: ETFs can provide downside protection as markets climb higher - Quick video of this weeks episode where Dave Nadig of ETF Trends chats with Paul Kim at Simplify ETFs along with CNBC's Bob Pisani to caht about the best ETFs to be in right now to protect against the risk that markets experience a downturn. This is a short snapshot with the full show. 3mins The Compound - Bitcoin is a Limited Supply of Nothing | What Are Your Thoughts? - This week in The Compound they run through bitcoin views from billionaires as well as retail investors and the myth that millennials are not seeking financial advice. They jump into whether Paypal will get into trading and become a fintech super application and how we’ve likely seen this sort of thing before. Check this out and more in the show. 47mins The Compound - How to Crush a Job Interview | Animal Spirits 219 - this Compound video is from late last week and they did this great episode on crypto/NFTs and getting started working in financial markets so we included it as this might be of interest for some in our audience. 48mins
Podcasts Equity Mates - Expert Investor: Graham Tuckwell - a pioneer of the ETF revolution - Graham Tuckwell, who founded ETF Securities, recounts the early days of ETFs, their listing of the first gold ETF and more stories in this episode. 49mins ETF Prime - NYSE’s Douglas Yones on Active ETFs, ESG, & Bitcoin - 31st August - In this episode the team chats with Douglas Yones from the New York Stock Exchange about the growth of Active ETFs as well as ESG ETF prospects and a bit on bitcoin. 61mins CNBC - ETF Edge - Hedging Against Interest Rate & Volatility Risk - 30th August - see the description from the ETF Edge short video above. This podcast is the full show. 27mins What the Flux - Adore Beauty's first profit everrr | Crown loses $261M | TikTok = Facebook, Snap follower now - not ETF related specifically but definitely related to the companies that ETFs hold - in this episode they talk about Adore Beauty which is held in the ATEC ETF but at a very small percentage (0.13%). They also mention Crown which appears in a lot more. As you can see below you can search for these within ETFs in our holdings analysis tools. They have daily episodes so this is just one. Make sure you subscribe to check out more. 6mins
Tweet of the week
This time from Matt Levine of Bloomberg. The tweet links to an article opinion piece on Robinhood and its order flow issues and its plans to get into more than just the PFOF space (which accounted for 80% of revenues). Interesting it true. https://twitter.com/matt_levine/status/1432741957965684739
Chart of the Week - New ETF Snapshots in ETFtracker
This is something that's coming soon to the ETFtracker app where users can go directly to a single ETF analysis page with some snapshot metrics. These metrics will cover 6 areas to begin with focusing on Returns, Size, Transactions, Tradability, Quality and Costs as they relate to ETFs. More details in the podcast/video version read through of this newsletter or you can read a bit more on the blog post about it here.
Further ETF Education YouTube - New Money - 5 Things To Know Before Buying An ETF | Stock Market for Beginners - recently published video going through things like returns expectations, costs, tax implications and more.
Access the ETFtracker Apps This week we added a new ETF Issuer to our list of holdings analysis apps. We finally have Vanguard ETFs as something that users can explore and analyse and it's all available here: https://www.etftracker.com.au/holdings With these tools users can see the sector and geographic exposure of ETFs (where country data is made available for holdings) and users can do other things like search for particular holdings to see which ETFs they're exposed to or compare ETFs to see how similar they are with their underlying holdings. This just adds to the tools we're creating to make analysing ETFs much easier for investors.
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
Listen or Watch 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 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.
Below is our the YouTube video from last weels episode.