Gold ETF inflows strong in October

Nov 10th, 2019 | By | Category: Commodities

Global gold-backed ETFs (including ETPs) recorded $1.9 billion of net inflows in October, swelling their collective holdings by 44.4 tonnes to a new record high of 2,900t, according to World Gold Council.

Gold ETF inflows strong in October

Inflows into gold ETFs remained strong throughout October.

Monthly flows

European listed gold ETFs attracted the lion’s share of global flows in October, adding $1.2bn (31.3t; 1.9% AUM) or 67% of net inflows worldwide.

UK-listed products accounted for two-thirds of the European total as investors sought a sanctuary from uncertainty ahead of the then 31 October UK EU withdrawal date.

Inflows were led by the WisdomTree Physical Gold ETC (PHAU LN) with $322 million (6.7t; 4.3% AUM), the Invesco Physical Gold ETC (SGLD LN) with $191m (3.9t; 2.7% AUM), and the iShares Physical Gold ETC (SGLN LN) with $139m (3.2t; 2.1% AUM).

North American listed gold ETFs added $585m net inflows (13.2t; 0.8% AUM) during the month. Flows appear to have been driven by a weaker US dollar, which declined by -2% during the month, as well as uncertainty around the October Federal Reserve meeting and US-China relations.

Within North America, the iShares Gold Trust (IAU US) ($702m; 14.5t; 4.3% AUM), Aberdeen Physical Swiss Gold (SGOL US) ($94m; 1.9t; 8.8% AUM), and SPDR Gold Mini Shares (GLDM US) ($45m; 0.9t; 4.3% AUM) drove the bulk of inflows. By contrast, the SPDR Gold Shares (GLD US), the world’s largest gold-backed ETP, experienced outflows, losing $238m (-5.3t; 0.5% AUM).

Flows were flat for gold ETFs listed in Asia and other regions.

YTD flows

Global gold ETF assets under management have grown 38% so far in 2019, driven by a combination of strong net inflows ($20.2bn; 421t; 14.4% of AUM) and price appreciation of approximately 18%.

European listed gold ETFs have grown consistently this year, seeing positive flows in all months except April. Holdings in UK-listed gold ETFs continue to make all-time highs, reaching 600t or 21% of global gold-backed ETF assets in October.

Strong inflows in North American gold ETFs over the past five months have increased the region’s contribution to 2019 growth; as of the end of October, North America had added 229t (55% of global year-to-date inflows) compared to 185t in Europe.

Low-cost ETFs in the US – defined as those with expense ratios of 0.20% or less – have seen positive flows for 16 of the past 17 months and have increased their collective holdings by 55% so far this year.

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