Gold ETFs See Net Inflow of Investment During August

Investing

Published: September 6, 2017 12:00 pm

Last Updated: January 12, 2020 8:28 am

Global gold exchange traded funds (ETFs) saw a net inflow of 1.6% of assets under management in the month of August, led by a 2.6% increase in North America-based ETFs. A total of 31.4 metric tons (tonnes) were added to bring total assets to $97.1 billion, slightly above its level 12 months ago.

According to the World Gold Council, which released the report Wednesday morning, the combined liquidity of gold ETFs rose month over month to $1.23 billion per day, near its annual average of $1.22 billion per day.

North American ETFs added 27.8 tonnes of gold to their assets in August, while Europe-based ETFs added 6.4 tonnes. Asian funds saw an outflow of 2.4 tonnes, and the rest of the world also saw a decline of just 0.5 tonnes.

The SPDR Gold Trust (NYSEMKT: GLD) added 22.4 tonnes in August, valued at $1.03 billion. The iShares Gold Trust (NYSEMKT: IAU) added 4.6 tonnes last month. Other large additions were made by Great Britain’s Source Physical Gold P-ETC, with a gain of 5.6 tonnes, and ETFS Physical Gold, which added 2.1 tonnes.

Among funds that experienced outflows, the SPDR Long Dollar Gold Trust (NYSEMKT: GLDW) saw an outflow of 0.1 tonne. The fund tracks the Solactive GLD Long USD Gold index, which itself tracks the daily performance of a long position in physical gold and a short position in a basket of non-U.S. currencies.

Global gold-backed ETFs collectively hold 2,295 tonnes of the yellow metal and have added 143.5 tonnes (valued at $5.3 billion) so far this year. This represents an increase of 5.5% of global assets under management.

Despite recent resurgence in North American demand, European funds continue to lead inflows with a gain so far this year of 131 tonnes (valued at $4.8 billion) for a rise of 12% in assets under management. European funds account for nearly 79% of all inflows worldwide on the year. North America inflows totaled 22 tones (valued at $860 million) for an increase of 2% in assets under management for the year, while Asia outflows total 10 tonnes valued at $426 million for a year-to-date decline of 16% in assets under management. Inflows for ETFs listed in other regions have added 1.1 tonne (valued at $62.9 million) on the year.

German-based ETFs Xetra-Gold and db Physical Euro Hedged ETC account for 73 tonnes, or 56% of the gross global inflows. Xetra-Gold itself has grown 48%, accumulating 54 tonnes valued at $2.1 billion.

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