Investors withdraw from gold ETFs in June

Jul 9th, 2018 | By | Category: Commodities

Gold-backed ETFs/ETPs (hereafter ETFs) experienced net outflows across all regions during June apart from Europe, where very modest net inflows were recorded, according to data from the World Gold Council.

Investors withdraw from gold ETFs in June

North American gold ETF outflows in June amounted to 44.4 tonnes ($1.9 billion).

Investors seemed to shrug off poor equity market performance and escalating global trade tensions, pushing the price of the ‘safe haven’ asset down by 4.2% in June.

Gold ETF outflows were dominated by North American funds which shed 44.4 tonnes ($1.9 billion or 3.7% of assets under management).

The SDPR Gold Shares (GLD US) and iShares Gold Trust (IAU US) led the declines in North America, losing 28.0t ($1.1bn, 3.2%) and 17.4t ($0.7bn, 6%) respectively, while the ETFS Physical Swiss Gold (SGOL US) lost 5.6t ($0.2bn, 20%) during the month.

The GraniteShares Gold Trust (BAR US) registered the largest relative growth in the region, up 5.9t or $0.2bn, dramatically increasing the size of the fund.

Gold ETFs listed in Asia and other regions lost 3.5t ($149 million, 3.8%) and 2.0t ($89m, 6.2%) in net outflows respectively.

Growth in the Chinese-listed Bosera Gold ETF stalled, seeing 2.2t ($0.1bn, 6.9%) of outflows in June.

Europe saw marginal inflows during the month, with gold ETFs increasing fractionally by 0.5t ($52m, 0.1%).

European inflows tipped positive thanks to the UBS CH-Gold (CHF hedged) ETF (AUCHAH SW), which added 4.4t ($0.2bn, 17.7% AUM).

Source: World Gold Council.

Year-to-date flows

A stronger dollar in the second quarter and a declining gold price have weighed on ETF holdings, but global AUM remains up 2.7% YTD.

European gold ETFs have added $2.5bn (5.9% AUM) in 2018. North American holdings are marginally down following two months of strong outflows.

Asian funds have seen an impressive percentage increase, growing by 15% YTD.

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