Exchange Traded Fridays - Issue 9 - 17th September 2021

Welcome to Issue 9 of Exchange Traded Fridays for the week ending 17th September 2021 and its another week of releases at ETFtracker. We updated the holdings analysis page with a new app that enables users to compare ETFs across ETF issuers. We only cover 6 issuers but that makes up 170 of the 240 ETFs. More on that below. This week in local news we provided a new updated holdings analysis tool to the market to help investors look under the hood, some details on ATO and tax implications with ETFs and details on advisers getting their clients into ETFs. Globally, it was further record for fund flows and more updates on bitcoin ETFs. Here's a summary of what else is in this newsletter. What's in this newsletter?

  • Articles - Local

  • Articles - Global

  • Videos

  • Podcasts

  • Tweet of the week

  • Chart of the week

  • ETF Education

  • ETFtracker App Updates

  • ETFtracker Forum

  • Listen or Watch

Articles - Local ETF Holdings Comparison Tool - In this article we highlight the new ETF holdings tool that's available as part of the ETFtracker offering. It shows how the tool works and what the coverage is limited to but its great if you're an investor who wants to compare ETFs to check for holdings overlap or you're interested in seeing which ETFs hold a certain stock you're interested in.

Accountants Daily - ATO issues warning on shares, ETF tax consequences - not often we'd include an accounting or ATO article but this deep dives into something the ATO will be looking for from young investors who trade ETFs - those who try to offset capital losses against income. Hopefully no one's been doing that here but certainly worth a read to be mindful of this. Independent Financial Adviser - Advisers flock to ETFs for reduced costs - In this article, VanEcks Smart Beta survey is quoted show responses from 547 in the advice sector and its seen that 91% of advisers use ETFs in their client portfolios (up from an already high 87% in 2020). This and other statistics in the article. VanEck - The next big thing is never what you expect - A look into innovation and how it's hardly ever been as expected in the past and why we should not be surprised by this. From Blockbuster to Netflix and other disruptions this article goes through how VanEck has seen this play out and 2 ETFs you can get into to play this (QUAL, MVA). ETF Securities - Weekly ETF Monitor week ending 10th September - Markets fell from all time highs last week. Chinese equities fared well compared to a few months prior. Some of the best performers over the week were VanEck Vectors ChinaAMC A-Share ETF (CETF), which was up 3.8%, and VanEck Vectors China New Economy ETF (CNEW) which was up 3.5%. More of this along with inflows is in their report.

Articles - Global Financial Times - ETF inflows shoot past 2020’s full-year record total - This article shows that globally, to the month end of August, 2021 has already seen more money flow into ETFs than in all 2021. That's a total of USD $9.7 trillion thanks to $834.2 billion coming into the ETF markets to this year. It goes into the abandonment of active manager opposition to ETFs and the increase in closed ended funds now converting to active listings. Yahoo FinaArk Invest Fund to Allow Participation in Canadian Bitcoin ETF - Very short article but basically, a new SEC filing shows the innovative ARK Invest is going to launch an ETF with exposure to the Canadian bitcoin ETFs that are out in the market. That's certainly one way to get into bitcoin ETFs. Financial Times - Crypto ETF assets treble as investors take risks - $9 trillion in ETFs globally is mostly plain vanilla funds but cryptocurrency ETFs are on the rise along with risky ETFs such as the various leverages ETFs. It talks about how the SEC has approved leveraged products but a consortium of ETF issuers (controlling 90% of the US ETF market) want these assets stripped of their ETF designation.

Videos Starting things off with a few videos that missed last week's Thursday night cut-off and with the first one being a video we're involved in which is always fun. ausbiz - ETF funds continue to build driven in part by ESG investors - 10th September - This is one featuring the latest ETFtracker analysis and data for August. We highlighted what happened in the month with performance and flows and also highlighted some of our new ETF holdings analysis. 8mins

ausbiz - Why ETFs thrived in 2021 - 9th September - Priscilla Luke from S&P Dow Jones Indices joins ausbiz to digest the results from the 2021 mid-year SPIVA Australia report. 5mins Back to what's happened over the this week and we start off with The Compound. The Compound - Here's How the First Bitcoin ETF will Happen | The Compound and Friends #14 - Josh and Mike talk with guests Leanna Haakons and Tom Lydon and since Tom runs ETF Trends/ETF Database then no doubt we start off with ETFs straight off the bat. From ETF flows in 2021 (and Vanguard / iShares being the biggest) to the flows of mutual funds versus ETFs. For both of these charts see the chart/s of the week section below. They go into the size of ETF holdings as well (top 10% of Nasdaq 100 is 50% of the whole fund) and more about what's driven growth. A very ETF centric show this time around so well worth the 41mins for this one. ausbiz - Why adding an ETF to your portfolio is a golden idea - In this episode its all about gold and whether to get into it via an ETF or the real thing. Kanish Chugh makes the case on this episode. 5mins ausbiz - The Australian ETF industry shatters another huge milestone - 14th September - Alistair Mills from BetaShares breaks down the now $125 billion of FUM in the market as at the end of August. From the newest Magellan active fund listing to what other new products came into the market in the month. 5mins ausbiz - Investing in the "Swiss army knife" of decarbonisation - 13th September - In this video, Jamie Hannah from VanEck goes through clean energy funds and the lowdown in the race to zero carbon emissions. They also go through the type of companies that are part of clean energy ETFs and how they're performing. 5mins

Podcasts Morningstar - A deep dive into ETFs - It's the 50th episode for this podcast and it's ETF themed. This is part 1 with episode 2 out next Sunday but its great to hear Shani and Mark go through a favourite topic of ours. They chat about the type of questions listeners have posed to them like looking at the underlying holdings of an ETF (something we're big on this week). They also talk about risk and rewards across ETFs and they've picked 6 to go through based on their analyst ratings. 31mins CNBC - ETF Edge - Exploring Direct Indexing - In this episode, CNBC's Bob Pisani speaks with Patrick O’Shaughnessy of O’Shaughnessy Asset Management and Dave Nadig, Director of Research at ETF Trends. They discussed a new investing strategy known as direct indexing. 29mins Equity Mates - Expert: Are Semiconductors the Picks & Shovels Play for the Tech Industry? | ETF Securities - In this episode, Bryce and Alec chat with Patrick Penfield, Professor of Supply Chain Practice at Syracuse University, Whitman School of Management to discuss semiconductors. Then they chat with Kanish Chugh from ETF Securities who just launched the SEMI ETF.

Tweet of the week US Sector and Industry ETF performance from TrackInsight: https://twitter.com/TrackInsightETF/status/1436334356235276292

Chart(s) of the Week - ETF growth in 2021

2 charts today both from the same episode of The Compound. First up is this one showing not just the dominance of Vanguard and iShares but how much Vanguard flows in 2021 have outpaced even the record it set in 2021 and the iShares record of 2017.

This next one is from the show again (and created by ETF stalwart Dave Nadig) and shows the projected trend of ETF vs mutual fund (MF) growth with the expectation that this current trajectory sees MFs being overtaken by 2026/27. What's interesting is not just the growth of ETFs but also the stagnation of mutual funds.

This down/flat trend of mutual funds could get worse with more investors doing the self investment version of an SMSF here (over there its 401Ks and IRAs).


Further ETF Education

In this week of ETF educaiton we're highlighting the eInvest "How to invest in ETFs" page which features details on the differnet types of ETFs, benefits, risks and how to buy them. Check it out.


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.

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


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




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