Bringing you live news and features since 2006 

ETF Securities reports largest weekly outflow from commodity ETPs for six months

RELATED TOPICS​

In its weekly brief, ETF Securities writes that last week saw the largest weekly outflow from Diversified Commodity ETPs for six months at USD80 million. This was the largest weekly outflow in the sector since November 2016. The firm writes that rising inventory levels among individual commodities such as oil, iron ore and sugar have been a drag on prices this year.

“There was an additional trigger last week when Moody’s downgraded China’s sovereign credit ratings one notch due to concerns over gross debt levels and slowing growth. Among major asset classes, commodities have been among the worst performers this year. Energy, soft commodities and agriculture were the worst performing sub-sectors in May, with livestock and precious metals the best.

“Commodity Futures Trading Commission positioning data had highlighted commodities reaching a peak bullishness sentiment end-February 2017. This bullish sentiment has since unwound considerably, remaining just above its long-term average balance between bull and bears.”

Gold ETPs at USD52 million and Silver at USD26 million saw their largest outflows over the week. ETF Securities writes that after their strong outperformance this year, they saw profit-taking in both Silver and Gold ETPs.

“Gold prices are up 11 per cent and Silver prices 8 per cent year-to-date,” the firm writes. “Another catalyst for profittaking is the upcoming June 14th Federal Reserve meeting, where the market is still placing a near certainty to a hike.Industrial metals reacted to the China Debt downgrade with USD30 million in outflows from the Industrial Metals basket last week. Industrial metals were down on average -2 per cent following China’s sovereign downgrade by Moody’s, ETF Securities writes.

“In addition to the downgrade, consensus is expecting the upcoming May industrial production and fixed asset investment data in China to show a slowdown in growth.”

Technology related ETPs (Cybersecurity and Robo) had their 12th straight week of inflows, marking USD91 million of inflows year-to-date. ETF Securities writes that investor interest in Tech continues to be strong as tech indices break new post-dot-com bubble highs.

“Last week also saw inflows in both long and short European ETPs as investors reacted to news that there could be an earlier than expected Italian election. European economic momentum continues to look the strongest globally on survey data such as the PMIs.”

Finally, opportunistic inflows into Crude Oil (USD15 million), came after oil prices fell after the May 25th OPEC meeting as the market was expecting more aggressive production cuts. The firm notes that there were some opportunistic inflows on the back of the price drops.

Latest News

REX Shares has announced a strategic reorganisation that integrates its REX Shares, MicroSectors, and T-REX products, as well as REX..
Allspring Global Investments writes that as it builds an investment platform for the future, it has filed for exemptive relief..
LSEG Lipper writes that ETF promoters in Europe enjoyed estimated net inflows (+EUR25.1 billion) for May 2024...
The European Fund and Asset Management Association (EFAMA) has published its 2024 industry Fact Book, which includes a foreword by..

Related Articles

Marcus Wayerer, Franklin Templeton
Franklin Templeton says that emerging markets are navigating a tricky environment at the moment, due to factors such as the...
Matt Barry, Touchstone Investments
Back in 2022, Cincinnati, Ohio-based Touchstone Investments launched its first four ETFs, having previously been predominantly a mutual fund company....
CN Tower, Toronto
The winners were announced in the second ETF Express Canadian awards at the event held at The Quay in Toronto,...
Darren Jordan, Komainu
Custody specialist, Komainu, was launched in 2018 as a joint venture between Nomura, digital-asset investment manager, CoinShares and blockchain business,...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by