Defensive ETFs flourish through volatile January
Defensive exchange traded funds (ETFs) are minimising the impact of market volatility, as investors look for alternative opportunities, robo-advice provider, Stockspot believes.
In its February ETF update, Stockspot reported that January 2016 saw volatility and share market falls across the globe which led to the first negative month of ETF funds under management (FUM) growth since August 2015 (falling four per cent), while the commodities sector had the highest monthly increase in FUM largely due to a 10 per cent rise in the gold price.
"Inflows into the fixed income and cash sector also highlights risk aversion during January," the report said.
"BetaShares' Australian High Interest Cash ETF (AAA) added $50M of new FUM.
"Other Australian bond ETFs, including IAF, RSM and VAF also received over $10M of new FUM each during January."
While there were declines in FUM at the very top end of the ETF market, ETF Securities, saw a 10 per cent surge in FUM, despite the market volatility, UBS suffered the biggest percentage hit to its FUM, dropping 26 per cent
AUTHOR
Nicholas O'Donoghue
Recommended for you
JP Morgan Asset Management has appointed an ETF specialist from Vanguard as it seeks to expand its ETF range.
The alternative asset manager has expanded its Singapore office with a head of Asian distribution, representing a “critical step” for the Asian business, where it is seeking to launch new offerings.
Six Australasian sustainable funds closed in the last quarter, according to Morningstar, while 39 per cent of all strategies saw outflows during the period.
The bank and financial services firm has appointed its next CEO for Australia and New Zealand, while its previous chief for the region takes up a new position.
