Industry Updates

Fixed income ETFs post strongest returns last week as recession fears loom

George Geddes

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A variety of fixed income ETFs produced the biggest returns last week amid a struggling US banking sector and stumbling Turkey and Brazil equities, according to data from JustETF.

Last weeks best performing ETFs were inflation-linked fixed income ETFs, with the likes of Lyxor Core FTSE Gilts Inflation-Linked ETF and the iShares GBP Index-Linked Gilts ETF producing returns of 6.53% and 6.43%, respectively. This comes in the same week the British Chambers of Commerce commented on inflation statistics for the month of February, stating food and alcohol has seen a rise with more products expected to see the same in the coming months.

Both UK gilts and US treasury bonds had a significantly positive week, with the SPDR Barclays 15+ Year Gilt ETF and the iShares USD Treasury Bond 20+yr ETF producing returns of 4.81% and 3.27%, for last week.

At the other end of the ladder, both MSCI Brazil and MSCI Turkey ETFs saw significant losses for the week. The iShares MSCI Brazil ETF saw losses of 6.79% and iShares MSCI Turkey ETF losing 6.77%.

Elsewhere, the US financials sector saw a lack of returns. The iShares S&P 500 Financials Sector ETF had losses of 4.32%, adding to its one-month losses of 5.21%. The sector faced a major selloff in the month of February, according to Amundi's monthly flows report, suffering global outflows of $1.63bn.

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Source: JustETF

The S&P 500, FTSE 100 and Euro Stoxx 50 had a dramatic Friday last week, all taking a nose dive after a positive start to the week. In particular, the SPDR S&P 500 ETF (Orange) and the iShares Core FTSE 100 ETF (Red) were pushing returns of nearly 2% before both slipped in to the negative over the course of the Friday. The iShares Core Euro Stoxx 50 ETF (Blue) produced losses of 2.71% on Friday alone.


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