ETFs: Investors Rush Into Precious Metals, Dump Energy (MOO, GLD, SLV, IAU, GDX, XOP, USO, UNG, XLE)

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July 15, 2011 3:30pm NYSE:GDX NYSE:GLD

Sumit Roy:  All large precious metals ETPs saw substantial inflows over past week, but grains ETPs performed best. Record highs in gold and one-month highs in the overall commodity sector spurred investors to finally deploy a large amount of capital into commodity-related exchange-traded


 products this week. Investors added $1.3 billion to the space, helping to send total assets to $168.6 billion.

But sector performance varied significantly. Precious metals completely dominated with inflows of $1.7 billion. The only other sector to see a net inflow was agriculture, with $135 million.

Energy was the biggest loser. The sector saw outflows of $459 million, while the broad market (multicommodity) and industrial metals sectors saw fractional outflows of $12 million and $11 million, respectively.

Given the week’s sector performance, it’s unsurprising that precious metals ETPs dominated the inflows list. Only the agriculture superstar, the Market Vectors Agribusiness ETF (NYSE:MOO), had the inflows necessary to make it onto the top 5 list. The fund took the No. 4 spot with $145 million in inflows, taking its 10-week total to more than $1.5 billion.

The rest of the inflows list consisted of precious metals juggernauts, including the SPDR Gold Trust (NYSE:GLD), iShares Gold Trust (NYSE:IAU), iShares Silver Trust (NYSE:SLV) and Market Vectors Gold Miners ETF (NYSE:GDX), with inflows of $1 billion, $246 million, $150 million and $85 million, respectively.

Just as precious metals ETPs dominated the inflows list, energy ETPs dominated the outflows list. The Energy Select Sector SPDR Fund (NYSE:XLE), SPDR S&P Oil & Gas Exploration & Production ETF (NYSE:XOP), United States Natural Gas Fund (NYSE:UNG), United States Oil Fund (NYSE:USO) and iPath S&P GSCI Crude Oil Total Return ETN (NYSE:OIL) took spots Nos. 1 through 5, with outflows of $262 million, $80 million, $54 million, $53 million and $29 million, respectively.

Hot Midwestern weather sent grain prices surging. In turn, grain-related ETPs were the top price performers this week. The iPath Beta Grains ETN (NYSE:WEET), Teucrium Corn Fund (NYSE:CORN), Elements MLCX Grains Index Total Return ETN (NYSE:GRU) and iPath Dow Jones UBS Grains Subindex Total Return ETN (NYSE:JJG) rose by 8.74 percent, 8.47 percent, 8.46 percent and 7.92 percent, respectively.

The UBS ETRACS CMCI Gold Total Return ETN (NYSE:UBG) was the only ETP unrelated to grains that made the list, with a 5.87 percent gain.

Finally, solar and cotton ETPs made up the bottom price performers list. The Market Vectors Solar Energy ETF (NYSE:KWT), Guggenheim Solar ETF (NYSE:TAN) and iShares S&P Global Clean Energy Index Fund (NYSE:ICLN) fell 9.37 percent, 7.76 percent and 7.21 percent, respectively.

The iPath Pure Beta Cotton ETN (NYSE:CTNN) and iPath Dow Jones-UBS Cotton Subindex Total Return ETN (NYSE:BAL) shed 8.93 percent and 8.19 percent, respectively.

Fund Flows Data: July 8 – July 14

Commodity ETF Weekly Flows By Asset Class

  Net Flows
($,mm)
AUM
($, mm)
% of AUM
Agriculture 134.59 13,439.19 1.00%
Broad Market -12.29 16,105.09 -0.08%
Energy -458.53 34,820.47 -1.32%
Industrial Metals -11.41 3,105.71 -0.37%
Precious Metals 1,687.80 101,174.81 1.67%
Total: 1,340.17 168,645.27 0.79%

Top 5 Commodity ETF Creations

Ticker Name Net Flows
($,mm)
AUM
($, mm)
AUM % Change
GLD SPDR Gold Trust 996.80 62,650.94 1.62%
IAU iShares Gold Trust 245.56 7,672.60 3.31%
SLV iShares Silver Trust 149.69 12,201.60 1.24%
MOO Market Vectors Agribusiness ETF 145.20 5,901.96 2.52%
GDX Market Vectors Gold Miners ETF 84.83 7,360.23 1.17%

Top 5 Commodity ETF Redemptions

Ticker Name Net Flows
($,mm)
AUM
($, mm)
AUM % Change
XLE Energy Select Sector SPDR Fund -262.35 8,838.36 -2.88%
XOP SPDR S&P Oil & Gas Exploration & Production ETF -80.05 920.72 -8.00%
UNG United States Natural Gas Fund -53.91 1,850.08 -2.83%
USO United States Oil Fund -52.80 1,293.97 -3.92%
OIL iPath S&P GSCI Crude Oil Total Return ETN -29.26 578.78 -4.81%

Top 5 Weekly Performers, Excluding <1,000 Shares Traded

Ticker Name Weekly
Performance
Weekly Volume AUM
($, mm)
WEET iPath Pure Beta Grains ETN 8.74% 8,016 6.68
CORN Teucrium Corn Fund 8.47% 1,011,418 131.68
GRU ELEMENTS MLCX Grains Index Total Return ETN 8.46% 425,635 27.75
JJG iPath Dow Jones UBS Grains Subindex Total Return ETN 7.92% 936,993 299.32
UBG UBS E-TRACS CMCI Gold Total Return ETN 5.87% 2,600 7.13

Bottom 5 Weekly Performers, Excluding <1,000 Shares Traded

Ticker Name Weekly
Performance
Weekly Volume AUM
($, mm)
KWT Market Vectors Solar Energy ETF -9.37% 356,754 26.24
CTNN iPath Pure Beta Cotton ETN -8.93% 20,350 5.10
BAL iPath Dow Jones-UBS Cotton Subindex Total Return ETN -8.19% 621,480 48.05
TAN Guggenheim Solar ETF -7.76% 1,669,969 148.67
ICLN iShares S&P Global Clean Energy Index Fund -7.21% 206,626 65.69

Top 5 Volume Surprises, Funds >$50 mm AUM

Ticker Name Average Volume
(30 Day)
1 Week Average Volume % of Average
NUGT Direxion Daily Gold Miners Bull 2X Shares 271,648 2,793,112 205.64%
JO iPath Dow Jones-UBS Coffee Subindex Total Return ETN 54,979 546,578 198.83%
SGG iPath Dow Jones-UBS Sugar Subindex Total Return ETN 78,567 771,087 196.29%
GCC GreenHaven Continuous Commodity Index Fund 175,254 1,706,896 194.79%
MLPL UBS E-TRACS 2X Monthly Leveraged Long Alerian MLP Infrastructure ETN 55,654 535,002 192.26%

Disclaimer: Data provided by IndexUniverse. All data as of 6 a.m. Eastern the date of publication. Data is believed to be accurate; however, transient market data is often subject to subsequent revision and correction by the exchanges.

Written by Sumit Roy From Hard Assets Investor

HardAssetsInvestor.com (HAI) is a research-oriented Web site devoted to sharing ideas about hard assets investing. The site has been developed as an educational resource for both individual and institutional investors interested in learning more about commodity equities, commodity futures and gold (the three major components of the hard assets marketplace). The site will focus on hard assets investing without endorsing or recommending any particular investment product.

HARDASSETSINVESTOR.com

This article is being distributed courtesy of www.HardAssetsInvestor.com. Copyright HardAssetsInvestor.com All Rights Reserved.



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