Defensive ETFs flourish through volatile January

exchange-traded-funds/robo-advice/

29 February 2016
| By Nicholas |
image
image image
expand image

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

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

5 months 1 week ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

5 months 2 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

7 months 2 weeks ago

The RBA has handed down its much-anticipated rate decision, following widespread expectations of a close call....

6 days 16 hours ago

The FSCP has issued a written direction to an adviser who charged clients “extraordinary fees” for inappropriate and conflicted advice, as well as encouraged them to swit...

3 weeks ago

ASIC has confirmed the industry funding levy for the 2024–25 financial year, and how much licensees can expect to pay....

1 week 4 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
5