Palladium ETFs sink into our Weekly worst ETFs list

Palladium ETFs wane on pessimism around car makers’ outlook

Despite rising consumer demand amid vaccine rollouts, a significant slowdown in vehicle production and sales is expected in the second half, due to the related semiconductors shortages, and the resurgence of Delta variant in southeast Asia having an impact on the global supply chain. The sentiment was confirmed last week by Japan's Toyota, which expects a 40% production cut globally.

Source: Trackinsight.com

Palladium, a key ingredient in cars’ catalytic converters was this week’s market victim. Between August 16 and 20, Palladium price fell by 12.88% and dragged down Palladium ETFs with it.

In Europe, Xtrackers Physical Palladium ETC fell by -13.28% while its peer in Americas Aberdeen Standard Physical Palladium Shares ETF (PALL) lost -11.03%.

Base Metals ETF falter on weak Chinese economic outlook

Last week, investors sold the base metal basket on China’s slowing growth, COVID-19 outbreaks, and U.S. tapering worries. Base metals include iron and steel, copper, nickel, aluminum among others.

China’s July monthly economic data showed a faster-than-expected slowdown in industrial and investment activity, pushing base metals prices lower on weaker consumption outlook. The S&P/TSX Global Base Metals Index fell by -8.1% between August 16 and 20.

Source: Trackinsight.com

ETFs tracking base metals or their miners followed path with negative returns during the same period.

In Europe, VanEck Vectors Global Mining UCITS ETF shed -9.23%. Likewise in Americas, Global X Copper Miners ETF and iShares S&P/TSX Global Base Metals Index ETF lost -13.77% and -12.1% respectively.

Honorable Mention: China ETFs

Continuous Chinese crackdown on major industries continue to weigh on China equities ETFs. In Americas, the Loncar China BioPharma ETF and KraneShares Hang Seng TECH Index ETF fell by -11.0% and -10.8% respectively between August 16 and 20. In Europe the same fate hit UBS ETF Solactive China Technology UCITS ETF and KraneShares MSCI All China Health Care Index UCITS ETF, as they lose more than 10% in the same period.

Bottom 10 ETFs of the Week: Base Metals and Palladium ETFs

Europe

• Xtrackers Physical Palladium ETC: -13.28%
• WisdomTree Physical Palladium ETC: -12.53%
• iShares Physical Palladium ETC: -12.52%
• Invesco Physical Palladium ETC: -12.52%
• GPF Physical Palladium ETC: -12.52%
• UBS ETF (CH): - 12.52%
• ZKB Palladium ETF: -11.87%
• Swisscanto Precious Metals - Physical Palladium: -11.18%
• UBS ETF Solactive China Technology UCITS ETF: -10.50%
• KraneShares MSCI All China Health Care Index UCITS ETF: -9.99%

Americas

• Global X Copper Miners ETF: -13.77%
• BMO Equal Weight Global Base Metals Index ETF: -12%
• iShares S&P/TSX Global Base Metals Index ETF: -12.10%
• Horizons Global Lithium Producers Index ETF: -12%
• United States Gasoline Fund: -11%
• Ninepoint Energy Fund: -11%
• Global X Cannabis ETF: -11%
• Aberdeen Standard Physical Palladium Shares ETF: -11.03%
• Loncar China BioPharma ETF: -11.0%
• KraneShares Hang Seng TECH Index ETF: -10.88%

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