Investors flock to ETCs, says ETFS

  • Story by: Daniel McAllister
  • Magazine: InvestmentAdviser
  • Published Monday , September 08, 2008

A rush of investment into exchange-traded commodities (ETCs) over the last three weeks of August has reflected a more bullish stance on the asset class, according to ETF Securities.

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Investors have shifted positions in energy ETCs following very strong inflows into ETFS Short Crude Oil and reductions in long energy positions, ETF Securities said.

ETFS Natural Gas and ETFS Forward Natural Gas added $7.5m (£4.2m) of new creations in the last week of August, while combined inflow into ETFS Brent and ETFS Crude Oil rose $6.9m.

ETFS Short Crude Oil, which saw a peak of nearly $300m of cumulative inflows just over one month ago, saw its third consecutive week of redemptions with net outflows of $44m for the last week of August.

"It is also significant there appears to be a turnaround in sentiment towards platinum, one of the hardest hit commodities during the recent commodity price correction," Nicholas Brooks, head of research at ETF Securities, said.

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