Gold ETFs see net outflows globally in February

Mar 8th, 2018 | By | Category: Commodities

Gold-backed ETFs (including ETPs) lost 5.1 tonnes of gold during February as investors withdrew assets on the back of a decreasing gold price and increasing volatility, according to data from the World Gold Council.

Gold ETFs see net outflows globally in February

Asia was the only region globally where gold-backed ETFs & ETPs saw net inflows during February.

At the end of the month, gold ETFs globally collectively held 2,393t, or $101.4 billion worth of gold.

Global inflows were dominated by Asian-listed ETFs which added 7.9t of gold during the month, gathering $318 million in net inflows and increasing AUM by 8.3%.

Flows across the rest of the globe were marginally negative. European ETFs lost 7.3t which equated to a net outflow of $237.1m or 0.57% of AUM, while North American-listed ETFs shed 5.1t with net outflows of $196m or 0.37% of AUM. Funds in other regions saw outflows of 0.7t ($28m, 1.6% AUM).

In Asia, the vast majority of inflows was recorded by the Bosera Gold Exchange Traded Open-End Fund ETF (159937 CH), listed on China’s Shenzhen Stock Exchange, accumulating 7.4t ($317m) and growing its assets 207% month-over-month.

In Europe, inflows were dominated by the Xtrackers Physical Gold ETC (XAD5 GR) , which added 6.8t, representing $290m net inflows and an increase in AUM of 41%, and the ETFS Physical Swiss Gold which added 1.2t or $53.3m.

The iShares Gold Trust (IAU US) led North American inflows as it added 4.7t or $205m, growing AUM by 1.8%.

These inflows were offset, however, by outflows. The world’s largest ETF – the SPDR Gold Shares (GLD US) – led global redemptions, losing 10.3t or $425m net outflows (1.2% AUM). This was followed by Gold Bullion Securities (GSS LN) which lost 8.1t or $344m.

Despite global net outflows in February, strong inflows in January has led gold-backed ETFs to add 25.3t of gold over the first two months of the year.

Over this period, Asian funds grew assets by 10%, while European-listed funds had outflows, with both regions reversing their 2017 trends. The iShares Gold Trust has accounted for 47% of global net inflows YTD but, with $11.2bn in AUM, is still some way off overtaking SSGA’s mammoth $35bn GLD.

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