– Near record weekly inflows into ETFS Brent (OILB) of $118mn and surge in trading volumes. Energy ETCs received $122mn of inflows, the largest in 6 months. Investors remain jittery over the escalation of tensions in the Middle East and North Africa and the potential for further contagion to..…
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larger oil exporters like Saudi Arabia and Iran, driving the highest inflows in over 4 years in OILB. Leveraged Natural Gas (LNG) sees fifth straight week of inflows, totalling $15mn, while investors shun Leveraged Crude Oil (LOIL). Investors appear to be using recent price weakness in natural gas markets as an entry point, as stockpiles begin to show evidence of persistent declines. However, after a near 17% rise in LOIL, investors appear to be taking profits.
– Gold regains top spot in physically-backed precious metal inflows with $66mn of inflows last week.
With geopolitical and sovereign risk rising and the threat of inflation continuing to rise, inflows into precious metal ETCs reached a 12-week high of $144mn last week. Eurozone bond spreads are again nearing record levels, and investors are once again turning to gold as a potential portfolio buffer in the event of a risk asset correction. A sharp rise in the price of silver has prompted the largest inflows into physically-backed silver in 18 months, totalling over $40mn.
– Largest inflows into agricultural ETCs in 16 months, with $80mn of new inflows last week. YTD inflows currently total $167mn. ETFS Agriculture (AIGA) received the majority of inflows last week, totalling $38mn, taking YTD inflows to $73mn. Sharp price declines across most of the sector appear to have attracted investors as inventory levels for many agriculture commodities remain near historically low levels.
– Industrial metals see first outflows in 19 weeks, but inflows into short industrial metal ETCs fade. ETFS Copper (COPA) led the trend of outflows from industrial metals with $6mn flowing out as geopolitical concerns spooked investors. Investors appear to be more uncertain on the outlook for industrial metals with inflows to short industrial metals ETCs almost nonexistent after nearly $50mn of inflows in 2010.
Source: ETFWorld – ETFSecurities
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