Energy ETC Assets Reach All-Time High on Demand for Natural Gas…
Sign up for our weekly Newsletter and receive the latest ETF and ETC news. Click here to register for your free copy
· Investors continue to build long natural gas ETC positions, pushing energy ETC assets under management to a new record of $2.5bn. Energy flows were dominated by natural gas inflows which rose $58mn last week, the largest inflows in three weeks. The inflows were evenly distributed between ETFS Natural Gas (NGAS) and ETFS Leveraged natural Gas (LNGA). While prices posted modest gains last week, investors appear to be anticipating that potential hurricane damage to Gulf of Mexico natural gas facilities may push prices higher.
· Gold buying reverses as risk appetite returns. Inflows into physical gold ETCs slowed last week, with total net withdrawal of $15mn compared to average weekly inflows of $97mn over the past month. It is unlikely to be a coincidence that the slowdown in inflows coincided with a rebound in risk appetite as a stronger than expected macro data last week put investors in a more confident mood. Most of the outflows occurred in Europe while US-listed ETFS Physical Swiss Gold Shares (SGOL) saw net inflows of $31.
· Agricultural ETCs see outflows for the sixth consecutive week as investors take profits. A secondary rally in grain prices appears to have prompted another bout of profit-taking by investors, with a net withdrawal of $68mn last week from Agricultural ETCs. The vast majority of the flow came from ETFS Agriculture (AIGA).
The volatility of price moves is easing after the initial price shock following the supply curbs in the Black Sea region over a month ago. Total agriculture ETC holdings currently stand at $1.7bn, up nearly $300mn compared to the same time last year.
· Leveraged commodity ETCs breach $1bn mark for the first time. The largest short and leveraged inflows in 2010 have been into ETFS Leveraged Natural Gas (LNGA), with net inflows of $292mn. ETFS Leveraged Crude Oil (LOIL) comes in a distant second with $39mn of inflows over the same period and ETFS Short Copper (SCOP) with inflows of $35mn and then ETFS Leverage Gold (LBUL) with inflows of $22mn.
· Gold buying reverses as risk appetite returns. Inflows into physical gold ETCs slowed last week, with total net withdrawal of $15mn compared to average weekly inflows of $97mn over the past month. It is unlikely to be a coincidence that the slowdown in inflows coincided with a rebound in risk appetite as a stronger than expected macro data last week put investors in a more confident mood. Most of the outflows occurred in Europe while US-listed ETFS Physical Swiss Gold Shares (SGOL) saw net inflows of $31.
· Agricultural ETCs see outflows for the sixth consecutive week as investors take profits. A secondary rally in grain prices appears to have prompted another bout of profit-taking by investors, with a net withdrawal of $68mn last week from Agricultural ETCs. The vast majority of the flow came from ETFS Agriculture (AIGA).
The volatility of price moves is easing after the initial price shock following the supply curbs in the Black Sea region over a month ago. Total agriculture ETC holdings currently stand at $1.7bn, up nearly $300mn compared to the same time last year.
· Leveraged commodity ETCs breach $1bn mark for the first time. The largest short and leveraged inflows in 2010 have been into ETFS Leveraged Natural Gas (LNGA), with net inflows of $292mn. ETFS Leveraged Crude Oil (LOIL) comes in a distant second with $39mn of inflows over the same period and ETFS Short Copper (SCOP) with inflows of $35mn and then ETFS Leverage Gold (LBUL) with inflows of $22mn.
Source: ETFWorld – ETFSecurities
Subscribe to Our Newsletter
