Assets in ‘safe-haven' exchange-traded products (ETPs) rose last week as investors adjusted positions in response to falling stock markets.
Although there were no huge outflows or large re-positionings in the European market last week, flows into gold and fixed income ETPs increased. ETF Securities reported inflows of US$155 million across its gold products last week to Thursday, according to a London-based spokesperson for the provider.
The ETP provider has seen almost $250 million of inflows into its gold ETPs year-to-date, most of which has been over the past four to five weeks. This marks a switch from the first half of the year when its gold products experienced outflows.
There has also been increased interest in bond products: "Within the fixed income space we have seen investors moving into safe havens, with increased inflows into German bond funds and to some extent [UK] gilts," says David Gardner, head of sales for EMEA at iShares in London.
"We also experienced some inflows into our gold and silver [exchange-traded commodities] during the course of the week."
Despite the market volatility last week - which has continued today after Standard and Poor's downgraded the US' credit rating and uncertainty continues over the future of the European peripheries - there have not been any significant inflows or redemptions, says Gardner. However, he adds that trading volumes remain high.
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