Gold-backed ETFs lost 5.1t in February

Asian-listed funds captured 32% of global net inflows during February

Global gold-backed ETFs collectively held 2,393.4 tonnes(t) (US$101.4bn) at the end of February as funds lost 5.1t of gold during the month, says a report by World Gold Council. Flows were negative as the price of gold decreased and its volatility increased. This was reflected by higher trading volumes globally in ETFs and futures.

Global inflows were dominated by Asian-listed funds which added 7.9t (US$318mn, 8.3% AUM) to their holdings during February. Flows across the rest of the globe were negative. European funds, lost 7.3t (US$237.1mn, 57bp AUM), while North American-listed funds had outflows of 5.1t (US$196mn, 37bp AUM). Funds in other regions had marginal outflows of 0.7t (US$28mn, 1.6% AUM).

In Asia, Bosera Gold Exchange Traded Open-End Fund ETF continued its recent growth trend accumulating 7.4t (US$317mn) and growing its assets 207% month-over-month. Its sister funds -the I shares and the D shares - were closed to new money and inflows from investors buying shares through Alipay were directed into the listed fund, which is a reason for the growing inflows*.

In Europe, currency-hedged gold-backed ETFs continue to dominate inflows. Xtrackers Physical Gold ETC EUR added 6.8t (US$290mn, 41% AUM). Gold Bullion Securities, in London, led European outflows, losing 8.1t (US$ 344mn, 8.6% AUM).

iShares Gold Trust led North American inflows as it added 4.7t (US$205mn, 1.8% AUM). SPDR Gold Shares led global outflows, losing 10.3t (US$425mn, 1.2% AUM).

*Holdings for the I and D shares were updated quarterly and were rolled over for the month of February.

Global gold-backed funds added 25.3t of gold over the first two months of the year:

Through the first two months of the year, Asian funds grew assets by 10%, while European-listed funds had outflows, with both regions reversing their 2017 trends. Elsewhere, iShares Gold Trust accounted for 47% of global net inflows.

Powered by Capital Market - Live News