GOLD DRIVES SOURCE ETC JUMP
Since the launch of its Exchange-Traded Commodities (ETC) platform in April last year, Source, the ETF provider, has seen its assets soar to more than €500m (£427m), making it the second biggest collateralised ETC provider in Europe. Most of Source’s products are US Treasury Bill-secured ETCs listed on Xetra but it is its physical gold-backed ETC listed on the LSE that has seen most of the growth. Source’s London ETC swelled $100m in April alone, taking it over $370m in total assets. The ETC?is backed by gold held in JP Morgan Chase vaults.
WORLD CUP COULD SEE PLATINUM SPIKE
ETF Securities predicts that platinum prices will jump during the World Cup as South Africa struggles to keep up with electricity demand, which could halt production. The last time South Africa had to ration electricity was in January 2008, prompting its physical platinum securities to jump 40 per cent as platinum miners were forced to operate at 90 per cent capacity. Head of precious metal sales Shamim Mansoor says: “With the World Cup being held during the South African winter, the use of electricity is likely to exceed the previous winter peak."
HEALTH AND AUTOS TOP ETF INFLOWS
According to data from BlackRock, last week’s largest ETF inflows were in healthcare ($43.5m) and automobiles and parts ($42.8). The biggest net inflows so far this year have been in media ($270m), while oil and gas inflows are the second-largest at $60.9m. The industrial goods and services sector, meanwhile, has seen $41.2m inflows.
Basic resources saw major outflows ($158.4m) last week, during which there were also $216.8m in ETF outflows from the Stoxx Europe 600. Year-to-date, the Stoxx 600 has seen $544.7m in net outflows.