8 ETF themes to buy now?

ETFs (like the equity indexes on which they’re based) haven’t had a great start to the year. But not all ETFs just buy broad country and global indices. In this article, Rodney Lay from Risk Return Metrics lists “eight ETF-based themes that investors, subject to their world view, may wish to consider from a tactical asset allocation perspective.”
Rodney Lay

Risk Return Metrics

Global equities markets started to stumble in January, and then fell flat on their face in February as Russia invaded Ukraine and caused uncertainty and alarm around the world. 

Investors who were already on edge thanks to the risks of inflation and the end of the recent stock market resurgence have now gone decidedly into "risk-off" mode. As of this writing, about 70% of the largest US stocks that make up the S&P 500 index are in the red year to date. Some big names like Meta Platforms Inc. (ticker: FB) and Netflix Inc. (NFLX) alone have lost more than 30% since 1 January.

ASX-listed global equities ETFs / ETMFs (exchange-traded funds and exchange-traded managed funds) have not performed well since the beginning of the year, and indeed the active ETF global equities vehicles have been slammed the most. 

Where can investors turn in this environment? 

This article lists eight ETF-based themes that investors, subject to their world view, may wish to consider from a tactical asset allocation perspective.

It has been the proliferation and diversification of ETF / ETMF vehicles over the last few years in the Australian market that now enables investors to execute more detailed and precise tactical asset allocation decisions.

8 ETF themes and specific ETF exposures

  • Agricultural Commodities (ASX: FOOD);
  • Oil (ASX: OOO, FUEL);
  • Cybersecurity (ASX: HACK);
  • Active Fixed Interest ETMFs;
  • Shorting Equities (ASX: BBUS, SNAS);
  • USD/AUD Appreciation (ASX: USD, YANK);
  • Volatility Dampening (ASX: WVOL, WRLD).

Gold Bullion and Gold Miners ETFs

Softs / Oil / Cybersecurity ETFs

The Big Short

Download the PDF to access the full ETF Flows report

Click on the pdf below to access charts and content supporting the 8 thematic propositions.

Never miss an insight

Enjoy this wire? Hit the ‘like’ button to let us know. Stay up to date with my content by hitting the ‘follow’ button below and you’ll be notified every time I post a wire.

Not already a Livewire member? Sign up today to get free access to investment ideas and strategies from Australia’s leading investors.

Livewire gives readers access to information and educational content provided by financial services professionals and companies ("Livewire Contributors"). Livewire does not operate under an Australian financial services licence and relies on the exemption available under section 911A(2)(eb) of the Corporations Act 2001 (Cth) in respect of any advice given. Any advice on this site is general in nature and does not take into consideration your objectives, financial situation or needs. Before making a decision please consider these and any relevant Product Disclosure Statement. Livewire has commercial relationships with some Livewire Contributors.

Rodney Lay
Rodney Lay
Risk Return Metrics

Investment analyst with particular experience in listed and unlisted investment strategies, equities and structured products.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.


Sign In or Join Free to comment