Australian monthly inflation posted a shock rise yesterday as steep electricity price hikes saw annual headline inflation jump to 2.8% from 1.9% in July. According to the ABS, Electricity costs rose 13.1 per cent in the 12 months to July, compared with a 6.3 per cent fall in the 12 months to June. The hike impacts the economy broadly and means we’re less likely to seek a cash rate cut at the next RBA Monetary Policy Board meeting.
Did you know that the number of ETFs on the US Stock Exchange is now greater than the number of stocks? I’ve been reading that there are 4,300 ETFs compared to 4,200 stocks. It seems crazy, although with the popularity of ETFs here and big growth numbers, I’m not surprised.
It’s fantastic for diversification and an easy way to get quick exposure as well as being great for first-time investors. But, with so many ETFs on offer and many offering the same strategies, it’s hard work identifying which works best for you.
We continue to specialise in the fixed income asset class and are proud of our fund-finding tools, including the ETF Finder and Managed Fund Finder.
It also gives us oversight into what you’re looking for, and in that vein, this week we compare the popular Betashares CRED ETF and the new Coolabah YLDX ETF.
The big news of the week was the US Fed’s Jackson Hole Symposium and the markets’ reaction to Fed Chair, Jerome Powell’s speech. Greg Wilensky from Janus Henderson has written a balanced article with great insight.
Credit spreads are tight, but according to Mitch Reznick and Mark Dove from Federated Hermes, duration is lower than it has been historically, and overall credit quality has improved. This article is well worth a read.
Revolution Asset Management has launched a new Credit Income Trust, attracting bids of over $1 billion, while data centre operator, AirTrunk has raised A$16 billion in sustainability-linked loans.
