ETF Securities has announced record year to date net inflows of over USD1 billion since 1 January 2016.
The firm reports that inflows to its ETF/ETP range included USD720 million into gold linked ETPs (99 per cent into physically backed ETPs) and over USD320 million into oil linked ETPs.
They say that on Tuesday 9 February, the firm saw its highest ever one day net inflow, of USD345 million, into its gold linked ETPs.
James Butterfill, Head of Research, says: "We expected an improved performance for gold in 2016 and it's certainly starting to materialise. We believe that Janet Yellen’s testimony today regarding the trajectory for the US Federal Reserve monetary policy and wider central bank monetary policy effectiveness are bringing financial market stability worries to the fore. This comes amid heightened concerns for European bank liquidity, the risk of a Brexit and the uncertainty regarding the US presidency candidates. Consequently, investors are returning to gold as a core diversifier and safe haven investment. Given the increasingly challenging investment and economic environment, we expect this trend to continue.”