Midas touch as ETF inflows grow

Midas touch as ETF inflows grow

Exchange-traded products focusing on gold and oil have seen significant inflows as investors shy away from the European equity markets, figures from ETF Securities has shown.

According to data from ETF Securities, more than $800m (£527.36m) has flowed into commodity-based ETPs already this year, compared with $1.1bn (£0.72bn)over the whole of 2014.

Rima Haddad, head of UK institutional sales for ETF Securities, said more investors had been nervous about the macro picture, especially the uncertainty over Europe and a possible tailing off of growth in the UK and US.

This comes as global ETPs recorded high levels over 2014, according to ETFGI consultancy, with $2.79 trillion (£1.83trn) invested in 5,580 ETFs and ETPs across the world. During 2014 alone, $338.3bn (£223m) of new assets flowed into ETFs and ETPs.

There are now 239 providers listed on 62 exchanges in 49 countries.

Adviser view

Gordon Bowden, founder of Buckinghamshire-based Quainton Hills Financial Planning, said: “At the moment gold is still hovering around on the bottom and it might be time to get into it now but in terms of general commodities, I would be wary as recently people have lost a lot of money because of the oil price.

“I have had people interested in gold-based ETPs and if they really wanted exposure to gold over the long-term I would put them into gold ETPs. I always remind investors they are in this for the long-term.”