ETF Securities says agriculture is beginning to receive renewed interest from investors as it i...
ETF Securities says agriculture is beginning to receive renewed interest from investors as it is widely perceived to be independent of the current financial crisis.
The provider of ETCs and ETFs reports that £42m was invested across a range of agriculture ETCs last week, which is the largest weekly inflow since April 2008.
It adds that the ETFS S-Net ITG Global Agri Business fund (Agri) ETF is up 14% since 5 December 2008, outperforming the FTSE 100 by 20.1 % in US dollar terms.
The company says the current financial environment is also contributing to steady inflows into ETCs.
It reports that since 7 November 2008, £1.1bn has flowed into ETCs, with gold and oil contributing 90%.
A total of £430m flowed into ETCs last week, of which 63% went into physical gold ETCs, 20% into oil ETCs and 10% into agriculture ETCs.
Last week's inflows into physical gold ETFs (PHAU) and gold bullion securities (GBS) were the largest weekly inflow on record, with 420,000 ounces of ETCs being issued.
ETF Securities adds that despite falling equity prices, the ETFS Russell Global Gold fund (AUCO) was up 9% in US dollar terms last week and 106% since 27 October 2008 , outperforming the FTSE 100 by 114%.
Long oil ETCs also continue to receive significant net inflows with oil remaining below $50 per barrel, reports ETF Securities.
A further £106m of inflows was received into oil ETCs last week with ETFS Crude Oil (CRUD) remaining the largest oil ETC with £279m. ETFS Leveraged Crude Oil (LOIL) remains the largest leveraged ETC with £62m of assets. In total, ETF Securities says there have been net inflows of £465m into oil ETCs since the start of December, resulting in asset growth of 450% to total £596m.
Despite falling commodity prices and up to a 50% fall in equity trading volumes, ETF Securities says exchange volumes for ETCs have increased across all exchanges. In total, the provider says weekly ETC trading volumes are up by 31% to £444m since January 2008.
Nik Bienkowski, chief operating officer at ETF Securities, says: "In the last two months of 2008 and continuing this year, investors are seeking assets which are liquid, secure and transparent."
"In addition, ETCs generally have low to negative correlation to equities and bonds," adds Bienkowski.
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Entry deadline: Friday 28 September 2018
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