FTAdviser.com

Advertising

Commodity ETFs represent 9 per cent of total ETF AUM in Europe compared with 4.4 per cent in the US, the Deutsche Bank division has said. It puts turnover in commodity products in Europe at approximately 12 per cent of ETF turnover overall. In the US the figure stands at roughly 3 per cent.

The new wave of energy and agricultural commodities equates to approximately 21 per cent of market share in both the US and Europe. According to db x-trackers, precious metals continue to dominate both US and European AUM in commodities, with 60 per cent of the US and 54 per cent of the European market.

The division expected growth in exchange-traded notes in the US, thanks to the more flexible structure for providing exposure to non-traditional underlying indices and instruments.

Manooj Mistry, head of db x-trackers UK, said: "The increased demand for commodities has been so eye catching that it has attracted the attention of all investors. Yet access to commodity investment remains quite limited for investors.

"Previously viewed as a cyclical rather than a tactical investment, commodities have, with one or two exceptions like gold, been overlooked as pure investment vehicles. As a result, investors’ attention in Europe has been drawn to ETFs and exchange-traded commodities, with their low charges, flexible structures and broad variety of market-tracking options."