ETF Securities Hits US$17 Billion

December 09, 2009


ETF Securities’ assets under management have nearly trebled in a year, according to the company, as investors have been steady buyers of precious metal, energy, agricultural and industrial metal exchange-traded commodities.

According to a press release, the company’s total assets under management recently hit US$17 billion, up US$11 billion from a year ago and up over 70% since July 2008, when many commodity prices peaked.

Physical gold and long natural gas ETCs have seen the largest investment demand in the year to date, with inflows of US$2 billion and US$1 billion, respectively, since the start of 2009. 

Physical gold ETC holdings have risen by 1.9 million ounces (US$2.2 billion at current gold prices) since the beginning of 2009 and by 4.2 million ounces (US$4.8 billion at current gold prices) since the beginning of 2008, ETF Securities says. Gold recently hit a new all-time high of over US$1,200 an ounce.

Industrial metals has been the strongest performing sector so far in 2009, the company reports, up 67% to the end of November, led by a 118% rise in ETFS Copper (COPA) and an 81% rise in ETFS Zinc (ZINC).

Nicholas Brooks, Head of Research and Investment Strategy at ETF Securities, said: “Demand for commodity ETCs has been incredibly strong in 2009. Most of the demand has been for long exposure, with investors building their holdings of “hard assets” both for their potential price-supportive long-term supply-demand fundamentals, as well as their potential to hedge against inflation and currency debasement risks as government finances deteriorate and central banks keep the liquidity taps open.”  



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