Etikett: robotic ETFs

Robotic ETFs continue to see inflows

Robotic ETFs continue to see inflows ETF SecuritiesRobotic ETFs continue to see inflows

ETF Securities – Robotic ETFs continue to see inflows

Highlights

  • US$15mn into robotic themed equity ETFs.
  • Industrial metals – buying on price dips.
  • Arabica coffee ETPs attract US$6.8mn – the highest since October 2017 – as investors bargain-hunt.
  • Crude oil ETPs resume outflows.

Download the complete report (.pdf)

US$15mn into robotic themed equity ETFs. Last week’s flows marked a 3 week high. Investors are increasingly enthusiastic about the role of robotics in the modern world and have identified an investment opportunity in the companies that enable the deployment of this technology.

Industrial metals – buying on price dips. Broad industrial metal ETPs received a second consecutive week of inflows (US$5.0mn) as investors bought on price dips. Long copper ETPs received US$8.7mn of inflows. These inflows were at a 4-week high. The International Copper Study Group’s latest set of data released last week showed that world mine production declined by 2.4% in the first eleven months of 2017, while world refined production is estimated to have slightly increased by 0.5% in the first eleven months of 2017. The International Copper Study Group expect another year of supply deficits in 2018 as supply remains tight while demand increases. Copper’s role in electrification of vehicles (upgrading of electrical networks and increased use of wiring in cars) presents a strong structural tailwind for the metal. Nickel ETPs continued to see inflows (US$34.3mn). Nickel also benefits from the electrification of vehicles (see Commodity Research: Nickel – electrification may boost demand)

Arabica coffee ETPs attract US$6.8mn – the highest since October 2017 – as investors bargain-hunt. With a cooler Southern Hemisphere summer, the prospects for heat damage to this year’s coffee crop is reduced. Coffee yields are likely to rise and stocks are likely to be replenished after withdrawals last year. However, should weather conditions turn or crops disease increase, this narrative will no longer apply and prices could rise. Investors appear to be trying to find bargains.

Crude oil ETPs resume outflows. While in the prior week we saw the first inflows since July 2017, outflows resumed last week (a modest US$2.9mn out of long oil ETPs). As prices bounced 3.9%, investors took profit. Rig counts in the US have been rising for five consecutive weeks, highlighting the extent to which US supply will keep rising if prices remain this high.

Important Information

General

This communication has been issued and approved for the purpose of section 21 of the Financial Services and Markets Act 2000 by ETF Securities (UK) Limited (“ETFS UK”) which is authorised and regulated by the United Kingdom Financial Conduct Authority (the “FCA”).
The information contained in this communication is for your general information only and is neither an offer for sale nor a solicitation of an offer to buy securities. This communication should not be used as the basis for any investment decision. Historical performance is not an indication of future performance and any investments may go down in value.

This document is not, and under no circumstances is to be construed as, an advertisement or any other step in furtherance of a public offering of shares or securities in the United States or any province or territory thereof. Neither this document nor any copy hereof should be taken, transmitted or distributed (directly or indirectly) into the United States.

This communication may contain independent market commentary prepared by ETFS UK based on publicly available information

This communication may contain independent market commentary prepared by ETFS UK based on publicly available information. Although ETFS UK endeavours to ensure the accuracy of the content in this communication, ETFS UK does not warrant or guarantee its accuracy or correctness. Any third party data providers used to source the information in this communication make no warranties or representation of any kind relating to such data. Where ETFS UK has expressed its own opinions related to product or market activity, these views may change. Neither ETFS UK, nor any affiliate, nor any of their respective officers, directors, partners, or employees accepts any liability whatsoever for any direct or consequential loss arising from any use of this publication or its contents.

ETFS UK is required by the FCA to clarify that it is not acting for you in any way in relation to the investment or investment activity to which this communication relates. In particular, ETFS UK will not provide any investment services to you and or advise you on the merits of, or make any recommendation to you in relation to, the terms of any transaction. No representative of ETFS UK is authorised to behave in any way which would lead you to believe otherwise. ETFS UK is not, therefore, responsible for providing you with the protections afforded to its clients and you should seek your own independent legal, investment and tax or other advice as you see fit.

 

Record inflows into robotic ETFs

Record inflows into robotic ETFs

ETF Securities – Record inflows into robotic ETFs

Highlights

  • Record inflows of US$56.3mn into robotic ETFs.
  • Industrial metal ETPs saw four consecutive weeks of inflows.
  • Crude oil ETP outflows of US$29.3mn followed a 3.3% oil price rally last week.

Download the complete report (.pdf)

Record inflows of US$56.3mn into robotic ETFs. Inflows into robotic ETFs rose to US$56.3mn, the highest weekly flow since their inception. Inflows into cybersecurity ETFs rose to US$15.9mn, the highest since June 2017. Robust inflows into these ETFs track a broader trend of strong performance in technology stocks (the S&P 500® Information Technology Index has risen 5.1% year-to-date for example). However, the increased of utilisation of automation and growing concerns about software security have piqued interest in this sub-class of technology in particular.

Industrial metal ETPs saw four consecutive weeks of inflows. Inflows into long broad industrial metal ETPs amounted to US$22.5mn (a three week high) and inflows into long copper ETPs amounted to US$14.9mn (a six week high). Global Manufacturing Purchasing Indices (PMIs) rose to a seven-year high at the end of 2017. The PMI survey indicates that demand for industrial metals will be strong in 2018 with growth of output, new orders and employment reaching levels last achieved in early- 2011. Last week’s China custom’s import data revealed that 2017 imports of copper ore and concentrate rose to an all-time high.

Long crude oil ETPs outflows of US$29.3mn followed a 3.3% oil price rally last week. Oil ETPs saw their 19th consecutive week of outflows. Investors appear to be taking profit on the most recent oil price rally. Oil prices touched US$70/bbl last week, up from US$56/bbl a year ago. Oil prices have received a tail-wind from falling crude oil inventories in the US, increased geopolitical tensions (in particular in Iran) and strong compliance by OPEC countries with their deal to curb production. However, looking beyond the headlines we see that gasoline inventories have risen (indicating that inventories have simply shifted from crude to product).

Geopolitical issues tend to wax and wane and so we doubt that the geopolitical premium will be persistent. US production of oil is likely to rise to an all-time high in 2018. Lastly with prices currently so strong, the incentive for OPEC countries to end their deal prematurely in June has increased. Although momentum may push oil prices back above US$70/bbl, we don’t think prices are sustainable at that level if fundamentals re-assert themselves over the coming month.

USD ETP shorts rose to a five week high. Rumours that the China will curb its purchases of US Treasuries (although never substantiated) spooked the market and led to a 1.5% depreciation in the dollar basket (DXY). There were US$6.6mn inflows into short US Dollar ETPs, mainly against the Euro. News that Angela Merkel’s Christian Democrat (CDU) party in Germany had reached a breakthrough with the Social Democrats (SPD) on Friday to form a coalition lent support to the Euro.

Important Information

General

This communication has been issued and approved for the purpose of section 21 of the Financial Services and Markets Act 2000 by ETF Securities (UK) Limited (“ETFS UK”) which is authorised and regulated by the United Kingdom Financial Conduct Authority (the “FCA”).
The information contained in this communication is for your general information only and is neither an offer for sale nor a solicitation of an offer to buy securities. This communication should not be used as the basis for any investment decision. Historical performance is not an indication of future performance and any investments may go down in value.

This document is not, and under no circumstances is to be construed as, an advertisement or any other step in furtherance of a public offering of shares or securities in the United States or any province or territory thereof. Neither this document nor any copy hereof should be taken, transmitted or distributed (directly or indirectly) into the United States.

This communication may contain independent market commentary prepared by ETFS UK based on publicly available information. Although ETFS UK endeavours to ensure the accuracy of the content in this communication, ETFS UK does not warrant or guarantee its accuracy or correctness. Any third party data providers used to source the information in this communication make no warranties or representation of any kind relating to such data. Where ETFS UK has expressed its own opinions related to product or market activity, these views may change. Neither ETFS UK, nor any affiliate, nor any of their respective officers, directors, partners, or employees accepts any liability whatsoever for any direct or consequential loss arising from any use of this publication or its contents.

ETFS UK is required by the FCA to clarify that it is not acting for you in any way in relation to the investment or investment activity to which this communication relates. In particular, ETFS UK will not provide any investment services to you and or advise you on the merits of, or make any recommendation to you in relation to, the terms of any transaction. No representative of ETFS UK is authorised to behave in any way which would lead you to believe otherwise. ETFS UK is not, therefore, responsible for providing you with the protections afforded to its clients and you should seek your own independent legal, investment and tax or other advice as you see fit.