Defensive ETFs have outperformed in the volatile markets experienced since the start of this year, according to ETF Securities (ETFS).
The issuer says utilities and other defensive ETFs slipped only marginally amid weak equity markets, in the week starting 18 January.
The ETFX Dow Jones Stoxx 600 Utilities fund and Janney Global Water fund fell 2% in this week, only half the decline of the Dow Jones Euro Stoxx 50 index.
ETFS says the outperforming defensive ETFs include long term structural growth themes and tend to have lower correlation to the business cycle.
The ETFX WNA Global Nuclear Energy fund, the S-Net ITG Global Agri Business fund and the Global Water fund are in the top 10 best performing funds on the issuer's ETF platform this year.
In terms of currencies, ETFS says increasing risk aversion has caused its Short New Zealand Dollar currency ETC to rally strongly, by 3.4% in the week of the 18 January.
The issuer says the New Zealand dollar is one of the highest yielding G10 currencies, although it also shows the highest volatility of any other currency pair in this category.
Demand for precious metal-based ETFs also continues to surge. ETFS listed its physically backed platinum and palladium funds in the US three weeks ago, which have had $700m of inflows.
The firm says ETFS Short Copper has experienced record inflows, amounting to over $20m in the week of the 18 January, boosted by concerns surrounding the impact of tightening monetary conditions in China and the recent strengthening of the US dollar.
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