Metals ETFs for silver and gold were set to rise Wednesday, but investors have been yanking money from these ETFs amid their recent decline. The iShares Silver Trust (NYSEArca: SLV) was up nearly 2% before the bell. “With the volatility in commodities, it should be no surprise that [ETF] flows there are strongly negative for the quarter,” said Nicholas Colas, ConvergEx Group chief market strategist, in a note Wednesday. [Investors Pull Money From Silver, Gold ETFs]
ETFs that invest in silver rallied nearly 4% on Wednesday, raising questions over whether the metal can recover after its recent drubbing on higher margin requirements for futures contracts. [Silver ETFs Find Footing]
Investors have put almost as much money into ETFs in the first half of the second quarter as they did through all of the first quarter, according to a report Wednesday. ETFs have attracted $20.4 billion of new assets quarter-to-date as compared to $27.2 billion for the first quarter, according to Nicholas Colas, ConvergEx Group chief market strategist. He said investors are gravitating toward “old-school” ETFs such as those that invest in stocks and bonds with inflows of $14.2 billion and $5.5 billion, respectively, quarter-to-date. [Investors Plowing Cash Into ETFs in Second Quarter]
Gregory A. Clay contributed to this article.
