Figures released by Deutsche Bank and ETF Securities confirm European investors largely stuck with ETCs last week despite a fall in commodity prices.
ETFS' weekly statistics reveal prices fell across every one of the issuer's commodity funds, yet net redemptions were limited to precious and industrial metals and energy.
All in all, the ETFS commodity platform saw redemptions worth $253m, the equivalent of roughly 0.9% of its total assets under management. According to Deutsche Bank, net outflows of €77m across all European ETCs amount to a loss of under 0.2% from an asset class worth €40bn.
Silver was by far the worst hit sector, losing 8.4% of assets through cash flows and 31% in total after a fall in the silver price of almost 30%. The gold fix also fell throughout the week to 6 May, but Deutsche Bank's European ETF Market Weekly Review shows investors nonetheless put €71m new money into gold ETCs.
Despite a headline decline in oil prices, which left the price of both ETFS WTI and ETFS Crude Oil down 11.5% over the week, Deutsche Bank's figures show oil ETCs domiciled in Europe lost just €6m during that time.
At the other end of the spectrum ETFS All Commodities saw €28.8m in net creations, despite its price dropping nearly 7%.
This trend would seem to support the firm's claims that broad commodity vehicles are increasingly being seen as a viable asset class and opportunity for portfolio diversification, not a means of chasing returns.
Deutsche Bank's report reveals flows to all European broad commodity ETCs stand at over €1.2bn so far this year, the equivalent of 25% of the funds' total assets.
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