Global net flows into exchange-traded products hit $55.2bn in July, a record month for 2016, according to data from BlackRock, the asset manager behind the iShares range of exchange-traded funds. Equities were the strongest performing asset class during the month as total global equity inflows reached $34.0bn, supported by relatively resilient markets and lower-than-expected signs of stress in the immediate aftermaths of the Brexit vote. US equity inflows were the main contributor, netting $32.0bn.

Inverse and leveraged exchange-traded fund provider Direxion has launched two new ETFs offering 2x leveraged exposure to European financials and single inverse exposure to gold miners. The Direxion Daily European Financials Bull 2X Shares (NYSE Arca: EUFL) seeks to achieve 200% of the daily performance of the MSCI Europe Financials Index, while the Direxion Daily Gold Miners Index Bear 1X Shares (NYSE Arca: MELT) seeks to achieve 100% of the inverse of the daily performance of the NYSE Arca Gold Miners Index. Sylvia Jablonski, Managing Director at Direxion. “The launch of the European Financials leveraged ETF is timely, as market reaction to the EU situation presents the chance for bullish traders to magnify their short-term perspective. Our new Gold Miners bear ETF will complement the existing suite of ETFs tracking that space, to give traders another option for taking advantage of short-term opportunities.”

Gold is making a comeback this year as investors look for safe-haven assets amid volatile markets, falling high grade bond yields and political events such as the EU Referendum. Data from exchange-traded product provider WisdomTree last week showed that gold ETPs have seen inflows of around $21bn in the first six months of the year. The metal is also trading at around $1,319 an ounce, which is up 24% since the beginning of the year. However, there is a strong case that gold is now over-priced, leaving little room for investors to buy the safe-haven asset at a sensible level. Danny Dolan, CEO China Post Global (UK) talks about why investors should look at gold mining ETFs.

Assets invested in ETFs and ETPs listed in Japan hit a record of $148bn at the end of June, according to independent ETF consultancy ETFGI. The record flows were driven by increased volatility in June as a result of the UK’s vote over whether to leave the European Union. Deborah Fuhr, managing partner at ETFGI, said: “Markets and investors around the world were engulfed in the chaos following what many saw as the unexpected result of the UK’s June 23rd vote. Volatility was up significantly during the month. The S&P 500 index was up just 0.3%.”

June inflows to global ETPs were the second best this year with investors putting their money into equities and gold as, despite Brexit, risk sentiment appeared to return, according BlackRock’s latest Global ETP Landscape Report. Global ETP flows hit $24.5bn last month, while April saw $11.1bn flow in and May had $10.7bn. Gold ETPs benefitted off the back of the EU Referendum as investors poured $2.5bn of assets into gold exposures pushing the June total to $5.4bn. Ursula Marchioni, Chief Strategist, iShares EMEA at BlackRock, said: “June flows have been mixed, demonstrating an absence of consensus amongst investors.”

Global index provider FTSE Russell has developed a new index series with the Namibian Stock Exchange. Due to launch tomorrow, there are 20 indexes on offer, which will be available as underlyings for index products, including exchange-traded funds. The Namibian-focused indexes have been calculated by FTSE Russell since 2002, but were previously part of the FTSE JSE Index Series. They have now been separated from this and will have their own Ground Rules. ‘Ground Rules’ describes the underlying universe from which constituents are chosen, their eligibility criteria and the frequency at which the composition of the indexes are reviewed.

Weaker than expected US economic fundamentals is setting the stage for the next gold bull market, according to exchange-traded fund provider Van Eck Global. A US jobs report in May that was significantly below expectations has resulted in lower expectations for the US economic recovery and an increase in the relative attractiveness of risk-off assets. Van Eck also believes this opens the door for further gains in gold mining equities.

Flows into global ETPs slowed in May to $10.7bn, just shy of the $11.1bn net inflows seen in April. The slowdown reflected the pullback in global risk sentiment, with fixed income exposures accounting for the majority of net inflows, according BlackRock’s ETP Landscape report. Fixed income net inflows registered $9.7bn, pushing cumulative flows into the asset class this year to $61.8bn – the best year-to-date performance in the history of the product. Ursula Marchioni, Chief Strategist, iShares EMEA at BlackRock, said: “With government bond yields at record lows, the influx of fixed income flows are going into credit-based exposures in the hope of getting whatever yields are left to scrap.”

Commodities have enjoyed their biggest three month gain since 2009, according to a note from S&P Dow Jones Indices. The S&P GSCI (formerly Goldman Sachs Commodity Index) has seen a total return of 9.8% this year-to-date, with commodities now outperforming stocks for the first year since 2007. While not every broad commodity index has performed as strongly as the S&P GSCI, which is weighted by world production and significantly energy sector-heavy, 2016 has seen a rebound in most commodities from their five-year trend, providing benefits to investors in a range of exchange-traded funds linked to these indices.

Traditional portfolios consisting of equities, bonds and cash may reap further diversification benefits through the inclusion of a broad commodity investment, according to research from leading exchange-traded fund provider WisdomTree (Europe). The findings illustrate that investors may reduce the risk and enhance the return of multi-asset portfolios by allocating funds to a diversified commodity-based ETF. Furthermore, WisdomTree maintains to maximise the benefit to the risk/return profile of the portfolio, investors should select commodity ETFs that provide an enhanced roll strategy. These approaches seek to minimise the costs associated with the loss of value from buying new, more expensive futures contracts when selling contracts close to expiry.