ETFs: Basic Resource ETFs Perform Strongly as Equity Market Strength Continues;
ETCs: Switch from Oil into Natural Gas ETCs Gathers Momentum with record inflows of $130mn, Leveraged ETC Inflows also Surge …
Basic Resource ETFs Perform Strongly as Equity Market Strength Continues
ETF Securities ETF Flow and Return Highlights
– ETF Securities’ basic resources-related ETFs extended previous gains last week, led by a 4% rise in the ETFS Russell Global Steel Large Cap Fund (STLL), and 3% gains in both the ETFS Russell Global Shipping Large Cap Fund (SHIP), and the ETFS Russell Global Coal Fund (COAL). Commodity and equity markets have strengthened over recent weeks as markets have factored in consolidation in some global activity indicators. The ETFS Dow Jones STOXX 600 Basic Resources Fund (BRES), has been the strongest performing Dow Jones STOXX 600 sector over the past month and YTD, outperforming all other sectors by 46 percentage points on average since the start of 2009.
– The ETFS S-Net ITG Global Agri Business Fund (AGRI) remains one of the most consistent ETF Securities’ ETFs, being a top 5 performer over the past week, month, quarter and half-year. Also, AGRI has outperformed the MSCI AC World Total Return Index by 34 percentage points over the past 6 months. Agriculture’s low correlation to the business cycle and strong long term supply-demand fundamentals are key factors supporting investor demand for AGRI.
– The ETFS Dow Jones STOXX 600 Oil & Gas Fund (OILG) has yet to match the recent rally in spot oil prices, with OILG up 9% over the past month vs. a 22% rise in the NYMEX WTI front month futures contract price. OILG is now trading 23% below its long run average relative to oil futures prices. Market optimism surrounding the global growth outlook, coupled with a decline in the most recent weekly US oil inventories, has helped support price growth in energy markets.
Switch from Oil into Natural Gas ETCs Gathers Momentum with record inflows of $130mn, Leveraged ETC Inflows also Surge
ETF Securities ETC Flow and Return Highlights
– The surge of inflows into natural gas ETCs gathered further momentum last week with ETFS Natural Gas (NGAS) receiving $98mn of new inflows and ETFS Leveraged Natural Gas (LNGA) seeing $16mn of new flows (equivalent to $130m of net long flows). Demand for these two ETCs has increased at an unprecedented pace since the first week of May, totalling $346mn over the period, second only to inflows into physically-backed gold ETCs.
– After natural gas, agriculture was the most popular sector last week with total inflows into agriculture ETCs rising by $23mn, the 15th consecutive week of inflows. ETFS Agriculture (AIGA), which tracks a diversified basket of softs and grains futures, continues to be the most popular agriculture ETCs with total inflows of $347mn so far this year, accounting for more than 75% of all flows into agriculture ETCs over the period.
– It is also interesting to note that last week there were inflows of $18mn into ETFS Short Gold (SBUL), the largest weekly inflow since SBUL began trading in March 2008. Overall positioning in gold remains highly bullish however, with cumulative inflows into physically-backed gold ETCs up over $1.4bn since the beginning of the year.
– Leveraged ETC inflows were the second largest on record at last $156 million last week, behind only the previous week’s total of $229 million. In addition, trading volumes of short and leveraged ETCs were approximately 50% of AUM last week with $200mn traded. Long ETC trading was $900mn last week, being approximately 10% of AUM.
Source:ETFWorld.co.uk – ETFSecurities
Lascia un commento