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.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.