Bear-focused ETFs ending FY19 poorly

Exchange-traded fund (ETF) investors seeking exposure to bear strategies in the US and Australian markets will likely be disappointed with their options, with funds of that type proving amongst the worst performing ETFs for both the year-to-date and the last 12 months.

According to ETF Securities’ Weekly Market Monitor, the worst performing ETF for both the year to last week’s end and the year-to-date was the BetaShares Australian Equities Strong Bear, with returns of -22.9 and -31.7 per cent respectively over each period. ETFs with exposure to bear markets in the US were nearly as poorly performing.

Another poor performer for the week was the VanEck Vectors China New Economy ETF, which was down 5.9 per cent, suggesting that Chinese markets pricing had fallen prey to the US-China trade war threats.

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Property remained a high performing sector, as it had for ETFs for much of the year. The VanEck Vectors Australian Property, Vanguard Australian Property Securities, and SPDR S&P/ASX 200 Listed Property ETFs were all top performer for the 12 months to 7 June, each returning at least 20 per cent.

Following the theme of physical assets standing strong, infrastructure ETFs from AMP Capital, ETF Securities and VanEck were all amongst the best performers for the year as well.

Finally, ETF Securities noted that while domestic financials and materials rallied in the aftermath of the Reserve Bank’s first rate cut in 33 months, there weren’t a match for the performance across some global and US strategies.

The top performers for the week were the BetaShares Geared US Equity fund, up 10.3 per cent, and the BetaShares Global Gold Miners ETF, up 5.5 per cent.

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