Gold-backed ETFs expand physical holdings in September

Oct 4th, 2017 | By | Category: Commodities

Dive deeper into ESG & Impact investing at our upcoming breakfast briefing on Wednesday 28th March 2018 at The South Place Hotel, London, with presentations from Equileap, FTSE Russell, MSCI and UBS - REGISTER NOW

Gold ETFs were in strong demand during September with gold-backed ETFs increasing their holdings of physical gold by 22.4 tonnes globally, according to data from the World Gold Council. However, significant differences in regional appetites for the precious metal were noted.

Gold-backed ETF holdings gain 22.4 tonnes in September

Gold-backed ETFs have added 191.9 tonnes of gold globally thus far this year.

North American investors added 36.0 tonnes (+$2.5bn, +4.7% AUM) of gold through funds listed in the region. According to BlackRock’s latest ETP Landscape report, US-listed gold funds enjoyed their largest month of inflows since June 2016.

The popular SPDR Gold Shares (NYSE: GLD) led net inflows in September, accounting for 60% of gross global inflows (approximately 13.4 tonnes). The iShares Gold Trust (NYSE Arca: IAU), currently with almost $9.5 billion in assets, added 5.2% to its AUM.

Outside of North America however, investors increased their allocation to risky assets and reduced their exposure to gold. There were outflows in Europe worth 12.0 tonnes (-$229m, -0.57% AUM) over the month, and Asia-listed funds lost 1.7 tonnes (-$57m, -1.7% AUM).

ETF Securities’ Gold Bullion Securities (LON: GBSS) lost 8.0 tonnes (-$312m, -7.3% AUM), while two Swiss-related funds had meaningful gains: the ETFS Physical Swiss Gold (LON: SGBS) increased holdings by 0.9t (+$44m, +8.1% AUM) and the iShares Gold CHF Hedged ETF (SIX: CSGLDC) gained 0.6 tonnes (+$29m, +8.2% AUM).

Global gold-backed ETFs collectively hold over 2,350 tonnes; they have added 191.9 tonnes of gold, equivalent to $7.5bn, so far this year. This represents an increase of 7.7% of global AUM from December 2016.

Tags: , , , , , ,

Leave a Comment