Net cumulative inflows into energy ETCs hit record $2.5bn, with inflows totalling $130mn last week. …
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Concerns about the impact of hurricanes on oil supplies appear to be outweighing caution over the recovery in global growth on energy demand, thus boosting net inflows into energy ETCs. Within the oil complex, investors have continued the $70-$85/bbl range trading strategy that began in mid-2009. Investors are also increasingly looking to incorporate leverage within portfolios, with ETFS Leveraged Crude Oil (LOIL) experiencing the largest inflows in 14 weeks, up $46mn from the prior week. ETFS Leveraged Natural Gas (LNGA) received $26mn in inflows last week despite prices remaining depressed as a result of US natural gas inventories
staying elevated.
· Physical precious metal ETCs remain popular, with inflows of $550m over the past four weeks. Investors remaining cautious on the global economic recovery have continued to favour physical precious metals investments as insurance against currency debasement and weak economic growth, with net inflows of $68mn into precious metal ETCs last week. Inflows into physical gold ETCs led the way, accounting for nearly 90% of flows into precious metal ETCs over the past month.
· ETFS All Commodities (AIGA) received largest inflows in 25 weeks, totalling $23mn last week. Cautious investors appear to be looking for portfolio diversification and have boosted holdings in broadly diversified ETCs as a result, at a time when equity markets are struggling to make positive returns.
· Agricultural ETCs experience the fifth consecutive week of profit-taking as supply issues weigh on prices. Investors withdrew $38mn last week from Agricultural ETCs, the majority of the flow coming from ETFS Wheat (WEAT) after further price weakness. The knee-jerk spike in prices is easing as investors realise that other countries (namely) the US are able to fill the supply void left from the recent issues in the Black Sea region. Over the past five weeks, investors have withdrawn a total of around $210mn.
Source: ETFWorld – ETFSecurities
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