Commodity exchange-traded funds have become increasingly popular and achieved a relatively high level of market awareness, a Deutsche Bank report reveals, due to a combination of the extraordinary recent returns and the ease of access.
Commodity exchange-traded funds have become increasingly popular and achieved a relatively high level of market awareness, a Deutsche Bank report on commodity ETF liquidity trends in Europe and the US reveals. This is due to a combination of the extraordinary recent returns in different areas of the commodity marketplace and the ease of access offered by listed products such as ETFs, notes and exchange-traded certificates.
Recent product innovation in the commodity area has persuaded a wider range of investors to consider adding this as an asset class to broad portfolio strategies, the report says. Commodity ETF assets in Europe are currently at an all-time high at close to € 9bn, European equity ETFs have assets of € 79bn and fixed-income ETFs € 21.2bn.
In the US asset growth has also been dramatic, the report says. Commodity-related listed products have close to € 24bn in assets under management, although this is smaller on a relative basis in a market where equity ETFs have assets of € 351bn. Turnover in US commodity-related ETFs and exchange-traded notes is currently around € 1.6bn, compared on-exchange turnover in Europe of just € 112m.
© Deutsche Bank
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Deutsche Bank ETF report EU-US.pdf
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