Products indexed to raw materials returned to collection last week

Products indexed to raw materials returned to collection last week
Products indexed to raw materials returned to collection last week

Will the surge be lasting? Last week, European exchange-traded products (ETPs) providing exposure to raw materials recorded a significant rebound in their inflows. According to Trackinsight data, subscriptions reached 703 million euros. An unequaled level since the start of the year since the weekly collection has only been positive five times since January. To date, the loss thus amounts to 5.3 billion euros for this market segment with just over 110 billion in outstandings.

Gold ETPs – which constitute three-quarters of the asset class – benefited from 294 million euros in subscriptions last week. A drop in the ocean in a context of strong outflows since the start of the year (more than 6 billion), despite the sustained increase in gold prices (+17% since the start of the year). These positive weekly flows were in particular driven by BlackRock’s vehicle: the iShares Physical Gold ETC – USD (ISIN: IE00B4ND3602) attracted 188 million in one week, reducing its outflow to 687 million since the start of the year.

But it is also vehicles backed by other precious metals which have attracted investors. Those dedicated to silver or platinum thus captured 248 and 120 million euros respectively. This is particularly the case for two WisdomTree vehicles: the WisdomTree Physical Silver ETC – USD (ISIN: JE00B1VS3333) records 219 million subscriptions, while the WisdomTree Physical Platinum ETC – USD (ISIN: JE00B1VS2W53) is close to 100 million. These two investment niches have not suffered as much as gold since the start of the year, since their collections have remained in the green (at 572 and 286 million respectively).

In the rest of the European ETF market, investors seem to be blowing hot and cold. On the one hand, equity ETFs recorded a second very good week of inflows (4.7 billion euros). On the other hand, bond ETFs (1.2 billion subscriptions) show a lesser appetite for risk, since sovereign debt dominates flows (755 million), to the detriment of investment grade credit (-297 million) and high yield (-56 million).

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