WisdomTree Europe says that oil is the big loser as USD2.4 billion has come out of exchange traded commodities since March. The firm writes that oil succumbed to renewed fundamental weakness in July as futures prices crashed by over 15 per cent; short oil ETPs produced outsized returns of up to 52 per cent.
Leveraged long ETPs tracking silver and platinum also outperformed their underlying benchmarks as investors continued to seek refuge in precious metals, WisdomTree Europe says.
Investors continued to hedge their long exposure, driving up UK gilts by nearly 2 per cent along with other long-dated government debt securities. Looking forward, WisdomTree says that broad European equity benchmarks and Eurozone banks experienced a post-Brexit rebound but remain vulnerable to ongoing volatility. Leveraged long equity ETPs tracking a variety of benchmarks all offered double-digit returns.