ETF Trends
ETF Trends

June proved to be a strong month for commodity exchange traded funds, as assets that were lost in May were recovered. The U.S. regulated commodity funds and products had inflows of about $1.65 billion.

“It’s pretty rare for us to see dollar for dollar in recovery, given the commodities complex’s volatility, and this is probably the first time it’s happened,”Matthew Lemieux, a Lipper research analyst said.

Barani Krishnan for Reuters reports on sub-sectors of the commodity market that saw strength: [ETF Chart of the Day: Commodities]

  • Precious metals funds dominated the action in both May and June — first with a net outflow of $659 million and later with a net inflow $954 million.
  • General commodity funds that saw $557 million in net outflows in May only got back $88 million last month, Lipper data showed.
  • Energy funds, which accounted for net inflows of $493 million in June — more than double May’s outflows of $222 million–tightened up the slack.

May outflows from the commodity sector saw total outflows of $1.65 billion, followed up by June commodity sector inflows of the same amount.  The largest gold-backed ETF, SPDR Gold Shares (NYSEArca: GLD), attracted the lion’s share of assets, at $490 million in June.  This month we’ve seen gold prices flounder compared to their highs and outflows from gold ETFs. [ETF Chart of the Day: Gold]

Investors have held their money in commodity ETFs even as values plunged  in the second quarter. Overall, the global value of commodity ETFs fell 7%, or $13.5 billion, between April and July, reports Emerging Money.

Furthermore, the volume of investment in commodity-focused ETFs has been able to hold steady since late 2010.

Tisha Guerrero contributed to this article.

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.