Weekly Commodity ETF Flows Report: Precious Metals ETP Assets Hit $100 Billion

 May 01, 2011 |

 

Fresh investor buying helped equity markets advance to new multiyear highs this week, as the Federal Reserve signaled it would keep monetary policy accommodative for a while longer. Commodity exchange-traded products weren't left out of the buying spree; $750 million of new capital flowed into the space, helping send total assets to $179 billion.

But like last week, individual sector performance varied significantly. Once again, inflows were heavily tilted toward precious metals ETPs, in which investors added $682 million. The other sectors—including energy, broad market, industrial metals, and agriculture—didn't fare nearly as well, with net inflows of $122 million, $120 million, $12 million, and outflows of $186 million, respectively.

It's also worth noting that while inflows into precious metals ETPs totaled $682 million in the period, total assets rose by a more substantial $3.9 billion, thanks to capital appreciation from surging gold and silver prices.

Turning to individual products—unsurprisingly—precious-metals-related ETPs dominated, taking four of the top five spots for net inflows. Interestingly, however, the Energy Select SPDR Fund (NYSE Arca: XLE) was No. 1, with $370 million in inflows. We can likely attribute this to a modest reversal of some of the $1.7 billion in outflows the fund has seen over the past couple of weeks.

One fund that has received a lot of attention recently, ProShares UltraShort Silver (NYSE Arca: ZSL), found itself on the inflows list for a second week, as more and more traders attempt to time the top in silver prices. All told, $201 million of capital entered the fund, the week's third-highest total. 

Also on the top creations list were the Market Vectors Gold Miners ETF (NYSE Arca: GDX), the PowerShares DB Precious Metals Fund (NYSE Arca: DBP) and the iPath Dow Jones-UBS Precious Metals Subindex Total Return ETN (NYSE Arca: JJP), with $207 million, $190 million and $118 million in inflows, respectively.

The outflows list this week was quite diverse. Ironically, the iShares Silver Trust (NYSE Arca: SLV) led with $189 million in outflows, as investors took profits. PowerShares DB Agriculture Fund (NYSE Arca: DBA), the United States Oil Fund (NYSE Arca: USO), the iPath Dow Jones-UBS Cotton Subindex Total Return ETN (NYSE Arca: BAL) and the United States Natural Gas Fund (NYSE Arca: UNG) followed with $129 million, $94 million, $85 million and $70 million in outflows, respectively. Incidentally, over the past month, investors have pulled over $900 million from the United States Oil Fund.

Taking a look at price performance for the week, silver ETPs dominated for a second week as the white metal rocketed to a record high. But the No.1 spot went to the Elements Credit Suisse Global Warming ETN (NYSE Arca: GWO), which rose by 13.84 percent. This, however, is a highly volatile product, so you shouldn't read too much into its movements.

The UBS E-TRACS CMCI Silver Total Return ETN (NYSE Arca: USV), ETFS Physical Silver Shares (NYSE Arca: SIVR), iShares Silver Trust (NYSE Arca: SLV) and PowerShares DB Silver Fund (NYSE Arca: DBS) followed, with returns of 9.17 percent, 7.14 percent, 7.12 percent and 7.01 percent, respectively.

Ag-related ETPs made up the bulk of the bottom price performers list this week. The iPath Dow Jones-UBS Cotton Subindex Total Return ETN (NYSE Arca: BAL) fell 9.64 percent as cotton prices plunged. The UBS E-TRACS CMCI Livestock Total Return ETN (NYSE Arca: UBC) fell 4.21 percent, and the iPath Dow Jones-UBS Softs Subindex Total Return ETN (NYSE Arca: JJS) dropped 3.98 percent.

 

Fund Flows Data: April 21 - 27, 2011

Commodity ETF Weekly Flows By Asset Class

 Net Flows
($, mm)
AUM
($, mm)
% of AUM
Agriculture-185.66 12,589.41 -1.47%
Broad Market 120.25 18,043.27 0.67%
Energy 121.75 40,298.27 0.30%
Industrial Metals11.66 4,106.96 0.28%
Precious Metals 682.49 104,155.22 0.66%
Total: 750.49 179,193.13 0.42%

Top 5 Commodity ETF Creations

TickerNameNet Flows
($,mm)
AUM
($, mm)
AUM % Change
 XLE Energy Select  SPDR 370.40 10,308.90 3.73%
 GDX Market Vectors Gold Miners 206.51  7,105.65 2.99%
 ZSL ProShares UltraShort Silver200.78 336.14 148.33%
 DBP PowerShares DB Precious Metals 189.78 582.09 48.37%
 JJP iPath Dow Jones-UBS Precious Metals Total Return ETN117.84 164.38 253.19%

Top 5 Commodity ETF Redemptions

TickerNameNet Flows
($,mm)
AUM
($, mm)
AUM % Change
 SLV iShares Silver - 189.30 17,252.14 -1.09%
 DBA PowerShares DB Agriculture -129.47  3,755.06 -3.33%
 USO United States Oil- 94.08  1,577.84 -5.63%
 BAL iPath Dow Jones-UBS Cotton Total Return ETN- 85.25 143.56 -37.26%
 UNG United States Natural Gas - 70.15  2,221.43 -3.06%

Top 5 Weekly Performers (Excluding Leverage/Inverse, >1,000 Shares Traded)

TickerNameWeekly PerformanceWeekly VolumeAUM
($, mm)
 GWO ELEMENTS  Credit Suisse Global Warming ETN13.84%56,687 3.82
 USV UBS E-TRACS CMCI Silver Total Return ETN9.17%98,476 11.75
 SIVR ETFS Physical Silver7.14%13,364,199 983.38
 SLV iShares Silver 7.12%920,828,035 17,252.14
 DBS PowerShares DB Silver 7.01%1,880,011 534.25

Bottom 5 Weekly Performers (Excluding Leverage/Inverse, >1,000 Shares Traded)

TickerNameWeekly PerformanceWeekly VolumeAUM
($, mm)
 BAL iPath Dow Jones-UBS Cotton Total Return ETN-9.64%3,738,136 143.56
 FUE ELEMENTS  MLCX Biofuels Total Return ETN-4.75%4,697 2.80
 LD iPath Dow Jones-UBS Lead Total Return ETN-4.72%15,527 6.58
 UBC UBS E-TRACS CMCI Livestock Total Return ETN-4.21%13,162 5.22
 JJS iPath Dow Jones-UBS Softs Total Return ETN-3.98%686,371 103.02

Top 5 Volume Surprises (>$50mm AUM)

Ticker

Name

Average Volume
(30 Day)
1 Week Average Volume% of Average
 JJP iPath Dow Jones-UBS Precious Metals Total Return ETN58,977 2,434,249 825.49%
 DBP PowerShares DB Precious Metals 224,831 5,110,797 454.63%
 ZSL ProShares UltraShort Silver  8,056,659 168,101,011 417.30%
 BAL iPath Dow Jones-UBS Cotton Total Return ETN224,545 3,738,136 332.95%
 SLV iShares Silver  57,093,072 920,828,035 322.57%

Disclaimer: Data provided by IndexUniverse. All data as of 6 a.m. Eastern the date of publication. Data is believed to be accurate; however, transient market data is often subject to subsequent revision and correction by the exchanges.



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