How ETF investors are reacting to eurozone chaos

ETFs

Martin Arnold, senior research analyst at ETF Securities, on which assets are benefiting from ongoing market gyrations.

Global exchange traded product (ETP) holdings have reached record levels in recent months, assisted by the escalating concern over a potential eurozone default coupled with the inability of eurozone policymakers to deal effectively with the sovereign debt crisis. Global commodity ETP assets rose by $3.7bn to reach a record quarterly high of $178.2bn by the end of the third quarter of 2011. Precious metal ETP assets surged by $11.8bn during the same period, with gold ETPs accounting for the majority of the growth in assets under management. Monthly gold ETP inflows peaked at $5.6bn ...