European investors have increased their commodity exposure in 2017 with $1.3 billion going into broad commodity ETFs in the first quarter of the year, according to data from ETF provider Source.
The UK-based company said that inflows in the first quarter of 2017 are quickly approaching the $1.8 billion invested into broad commodity ETFs in the whole of 2016.
The vast majority of this year’s broad commodity flows have been into ETFs tracking the Bloomberg Commodity Index, with the Source Bloomberg Commodity UCITS ETF raising over $1 billion since its launch in January 2017: the company’s most successful ETF launch in the past five years.
Chris Mellor, product specialist at Source, said: “It’s clear that investors wanting to diversify their portfolios are turning to commodities.
“That makes sense given the low correlation commodities have with equities and bonds, and especially now that some equity valuations may look stretched.”
©2017 funds europe
