Which Aussie ETFs hold SVB stock on their portfolios?
Several ASX-listed ETFs hold SVB on the portfolios but there's minimal exposure.
The collapse of Silicon Valley Bank last Friday sent shockwaves through markets. As the 16th largest bank in the US with a significant presence in the tech sector, publicly listed companies with funds held at the bank were left in limbo.
While US regulators have since calmed the market by confirming Monday that no deposit holders would suffer losses, it remains the second biggest banking fail in US history and the consequences are likely still being untangled.
Dozens of ETFs are also holders of SVB's parent company SVB Financial Group (NASDAQ: SIVB). With SVB listed on the S&P500 index (the 500 biggest public US companies) and MSCI World indexes among others, several Australian ETFs are among those impacted.
Should ETF investors be worried?
Investors holding sector-based financial or cryptocurrency themed ETFs will have seen their portfolios dip. For instance the Betashares Global Banks ETF (BNKS) fell more than 6% following the news on Friday.
However the impact for broad-based index fund holders (typical ETFs) is likely to be minimal.
It's worth remembering that ETFs typically passively track an index of many multiple stocks. Any one stock in an ETF portfolio tends to make up less than 1% of the total. In the case where a stock collapses, it's usually replaced by another on the index.
S&P Indices have reportedly said Insulet Corp. (PODD) will replace SVB Financial Group (SIVB) in the S&P 500 index by Wednesday. While SVB was a relatively large company by Australia's standards, it makes up a small percentage of all S&P500 holdings.
If interested, below is a list of Australian ETFs with exposure to SVB Financial collected by Finder, followed by a list of ASX and US stocks. ETF weightings are as of March 13 and funds under management (FUM) are dated Jan 30.
ASX-listed ETFs holding SVB
1. Vanguard MSCI Index International Shares ETF (VSG)
- SVB holding: 0.03396%
- FUM: $5.4b
2. SPDR S&P World ex Australia Carbon Control Fund (WXOZ)
- SVB holding: 0.023169%
- FUM: $329m
3. SPDR S&P 500 ETF Trust (SPY)
- SVB holding: 0.018697%
- FUM: $133m
4. SPDR MSCI World Quality Mix Fund (QMIX)
- SVB holding: 0.011213%
- FUM: $35m
4. BetaShares Global Banks ETF - Currency Hedged (BNKS)
- SVB holding: 0.002229%
- FUM: $60.37m
5. BetaShares S&P 500 Equal Weight ETF (QUS)
- SVB holding: 0.000952%
- FUM: $228.94
6. iShares Core MSCI World ex Australia ESG Leaders (AUD Hedged) ETF (IHWL)
- SVB holding: Not disclosed (<0.01%)
- FUM: $218.50m
7. iShares S&P 500 ETF (IVV)
- SVB holding: Not disclosed (<0.01%)
- FUM: $5.06b
8. iShares Core MSCI World ex Australia ESG Leaders ETF (IWLD)
- SVB holding: Not disclosed (<0.01%)
- FUM: $574.40m
Stocks with funds held at SVB
The following Australian and US listed companies have filed public documents revealing their accounts held with SVB. There are hundreds of firms that bank with SVB and these are some of the more well-known of those.
Life360 (360)
- Market cap: $988.394M
- Life360 has been exposed to $US5.6 million but does not anticipate any significant disruptions to its operations.
Nitro Software (LTO.AU)
- Market cap: $507.722M
- Nitro Software has been exposed to $US12.18 million, but it also has undisclosed global cash reserves held outside of the bank.
Sezzle (SZL)
- Market cap: $116.582M
- The buy now pay later company has $US1.2 million with SVB but $US68 million with other financial institutions.
Xero (XRO)
- Market cap: $13.017B
- The accounting services provider has up to $US5 million in its bank account.
Whispir (WSP)
- Market cap: $36.637M
- Whispir's exposure to SVB is minimal, with only $US173,679 currently tied up with the bank.
Roblox (RBLX)
- Market cap: 24.063B
- According to a filing by Roblox, as of Feb. 28, 2023, around 5% of its cash and securities balance of $3 billion was held at SVB.
Rocket Lab USA, Inc. (RKLB)
- Market cap: 1.868B
- Rocket Lab USA reported in a filing that as of Dec. 31, 2022, it had $38 million in cash, which represented 7.9% of its total cash and was held at SVB.
Roku, Inc (ROKU)
- Market cap: 8.405B
- In a filing Roku stated that it had approximately $487 million held at SVB, which represented about 26% of its cash and cash equivalents as of March 10, 2023. The remaining balance of $1.4 billion was held across other large financial institutions.
Etsy (ETSY)
- Market cap: 13.21B
- Etsy has warned sellers that the collapse of SVB has resulted in processing payment delays, according to an email from the company shared with NBC News.
Lemonade (LMND)
- Market cap: 936.955M
- According to a recent filing, Lemonade advised that it has just US$7,000 held with SVB and was not impacted by the collapse.