Fears over potential sharp fluctuations in the key global currencies are driving investors into FX-hedged ETFs at a rate far surpassing that of last year.
US technology stocks are suffering once again amid a fresh sell-off, which has hit flows into exchange-traded funds (ETFs) tracking this area of the market over recent days.
Robotics and technology ETFs and mutual funds are seeing strong inflows as investors become more aware of this area of the market. Much of this demand has been driven by repatriation policies of US President Donald Trump.
The VIX index, which measures equity market volatility, has been at ‘exceptionally’ low levels since the start of the year, but ETF Securities warns this is not factoring in market risks that could cause a sell-off in the near future. The firm suggests volatility should be at much higher levels than the index is indicating.
Investors had been betting on an oil price rebound ahead of the OPEC meeting last week, and they appear to have been right in doing so, as the oil price has soared after an agreement on a product cut was finally reached.