The banks came out of last week’s post-election share market rise very strongly, with Westpac alone up 13 per cent from the week before on Friday, and data from FE Analytics reveals which funds were best positioned to take full advantage of this jump.
Wealth Within’s chief analyst, Dale Gillham, said that the surprise election result saw a scramble by short-sellers to cover positions, labelling the banks “some of the big winners” of these movements.
Five funds, mostly exchange-traded funds (ETFs), in the Australian Equities sector held over 10 per cent of their funds under management (FUM) in the biggest winner, Westpac, and the chart below shows how this holding translated into strong returns. The spike in the last fortnight brings the performance of all the funds either close to or above their highest returns for the last year.
Of these funds, the VanEck Australian Banks ETF held the most FUM in Westpac, with 20.44 per cent of its total holdings, followed by the State Street Global Advisors SPDR S&P ASX 200 Financials ex AREIT ETF (17.54 per cent), Perpetual’s Wholesale Geared Australian...