Gold-backed ETFs lost 5.1t in February
According to WGC, Gold-backed ETFs collectively held 2,393.4t (US$101.4bn) at the end of February after losing 5.1t (US$146mn) during the month. Our analysis of gold-backed ETFs and similar products, provides detailed information and insights on global trends in gold investment demand through ETFs.
Regional fund flows:
1: Asian-listed funds added 7.9t (US$317mn, 8.3% AUM)
2: European funds lost 7.3t (US$240.6mn, 57bp AUM)
3: North American funds lost 5.1t (US$196mn, 37bp AUM)
4: Funds in other regions lost 0.7t (US$28mn, 1.6% AUM)
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. 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$240.6mn, 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).
Individual fund flows:
A: Bosera Gold Exchange Traded Open-End Fund ETF added 7.4t (US$317mn, 207% AUM)
B: Xtrackers Physical Gold ETC EUR added 6.8t (US$290mn, 41% AUM)
C: iShares Gold Trust added 4.7t (US$205mn, 1.8% AUM)
D: Gold Bullion Securities, lost 8.1t (US$ 344mn, 8.6% AUM)
E: SPDR Gold Shares lost 10.3t (US$425mn, 1.2% 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.
Year-to-date trends: i: Asian and European funds have reversed their 2017 trends, ii: Assets in Asian-listed funds grew by 10% through February, iii: European-listed funds have had two consecutive months of net outflows, iv: iShares Gold Trust accounted for 47% of global net inflows through February.
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.