ETF, LIC & LITs

The market capitalisation of ASX Listed Investment Companies (LICs) and Listed Investment Trusts (LITs) grew 6% to $46.8bn in the September 2020 quarter. The report now features 69 of the 110 LIC/LITs which accounts for 92.6% of the sector’s overall size.

Amid the economic uncertainty, onshore ETFs are becoming popular cost effective tools for navigating volatile markets. Net fund inflows were up tenfold month-on-month, with $1,126m circulating back into the space.

ETF funds under management has been on the rise, reaching $70.5bn in August. In this report, we provide an update on domestic equity ETFs, global equity ETFs, fixed interest ETFs and commodity & currency ETFs.

The gold spot price (per ounce) soared from ~US$1,780 to ~US$1,974 over July as second wave fears of COVID-19 remained the prevailing market narrative.

The hacking of 130 high-profile Twitter accounts on Wednesday 15 July is a reminder of the growing importance of cybersecurity in the new digital age. HACK provides exposure to a diversified portfolio of the largest leading and emerging cybersecurity companies in the world.

The rebound in domestic equities continued in May as the All Ordinaries rose towards 6,000. Whilst the increase in the ASX All Ordinaries Accumulation Index and the S&P/ASX 200 Accumulation Index was not as substantial as previous month, they returned a solid 5.0% and 4.4%, respectively.