Industry Updates

November's performance: Gold-backed ETFs thrive amid commodity slip

George Geddes


US-listed ETFs recorded inflows of $45bn for the month of November, according to a report by Deutsche Bank. This brings the total YTD flow for the US to $261bn. November's high was the second largest of the year so far, signalling strong investor appetite for year-end positioning, Deutsche said.

In tandem to the large ETF inflows, November's secondary trading slipped from the previous month's performance. Last month's turnover was $2.2tn, down from $3tn in October.

Asset returns were for the most part positive for equities and fixed income while commodities were experiencing negative performances. However the World Gold Council has released a report for last month's performance saying, gold-backed ETFs thrived while other commodities, such as oil, struggled.

Gold ETFs globall attracted around $804m in inflows in November, the majority of which came from Europe and North America, contributing $371.9m and $352.7 respectively. This was the second consecutive month of inflows.


Source: World Gold Council

Investors new found love of Gold ETFs will be welcomed by ETF providers. The October-November inflows come after six straight months of outflows. The six months worth of outflows mean that YTD, North America and Asia have experienced net outflows of $2.1bn and $46m from gold ETFs. But globally the flow remains positive due to Europe's positive outlook and having inflows nearing $3bn.

In contrast, oil's performance slipped by 22 per cent due to supply concerns and investor's move out of institutional grade and high yield credit and into Money Markets, according to Deutsche.

Featured in this article


No ETFs to show.