June 20, 2008 at 1:00 am by Tom Lydon
When it comes to commodity exchange traded fund (ETF) inflows, Europe is leaving the United States in the dust.
In fact, assets under management for such funds is currently double that of the United States, reports Anna Lawlor for FTAdviser. They represent 9% of assets under management in Europe, compared to 4.4% in the United States.
Exchange traded commodities are the preferred commodities trading vehicle in Europe, where they account for 84% of turnover in the sector. In the United States, ETFs are the vehicle of choice, accounting for 97% of commodity trades.
Europe is expected to follow the U.S.’ lead and move away from exchange traded commodities into ETFs, an occurrence expected over the next two to three years.
Tags: Commodity ETFs, Europe, Sector ETFs
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