Sumit Roy: No sector could escape this week’s broad-based liquidation, but energy continues to suffer the most, while precious metals and ags hold firm.
With U.S. economic slowdown worries and Greece sovereign debt concerns dominating financial headlines, it’s unsurprising that commodity-related exchange-traded products saw yet another net outflow last week. In total, $1.2 billion flowed out of the segment, which is the sixth outflow in seven weeks.
But once again it was energy that took the bulk of the hit, with $787 million in outflows. Industrial metals and broad market (multicommodity) ETPs followed with $256 million and $200 million in redemptions, respectively.
The other two core commodity sectors sectors—agriculture and precious metals—continue to react relatively well. Agriculture suffered only $17 million in outflows, while precious metals lost a mere $13 million.
The ag sector’s stability continues thanks to the Market Vector Agribusiness ETF (NYSE:MOO), as the fund made its sixth straight appearance on the inflows leaderboard. But MOO dropped all the way to No. 5, with “only” $26 million in inflows.
Instead, the Market Vectors Gold Miners ETF (NYSE:GDX) took the top spot, with $129 million in inflows, followed by its close cousin the Market Vectors Junior Gold Miners ETF (NYSE:GDXJ), with $47 million.
In between the two gold funds and MOO were the Direxion Daily Energy Bull 3x Shares (NYSE:ERX) and the ProShares Ultra DJ-UBS Crude Oil (NYSE:UCO), clear signs of speculators trying to play a potential oil rally.
Yet inflows into ERX and UCO were not nearly enough to offset yet another massive outflow from the Energy Select Sector SPDR Fund (NYSE:XLE), which took the top spot on the outflows leaderboard for a third straight week, losing $643 million. XLE’s assets have dropped almost $3 billion since April.
Despite outperformance in copper prices this week, the First Trust ISE Global Copper Index Fund (NYSE:CU) saw $202 million in outflows, effectively cutting AUM in half.
The SPDR S&P Metals and Mining ETF (NYSE:XME), iShares Silver Trust (NYSE:SLV) and SPDR S&P Oil & Gas Exploration & Production ETF (NYSE:XOP) rounded out the top five with outflows of $193 million, $93 million and $49 million, respectively.
Moving on to price performance for the week, it was all about sugar and livestock. The iPath Pure Beta Sugar ETN (NYSE:SGAR), iPath Dow Jones-UBS Sugar Subindex Total Return ETN (NYSE:SGG), iPath Dow Jones-UBS Livestock Subindex Total Return ETN (NYSE:COW) and iPath Pure Beta Livestock ETN (NYSE:LSTK) took the Nos. 1, 2, 4 and 5 spots with returns of 3.85 percent, 3.68 percent, 2.92 percent and 1.15 percent, respectively. In the middle was the iPath Pure Beta S&P GSCI-Weighted ETN (NYSE:SBV) at No. 3 with a 3.26 percent return.
Meanwhile, cotton and grains were the poorest performers last week, although the rarely traded Elements Credit Suisse Global Warming ETN (NYSE:GWO) was the leader, with a 12.54 percent decline.
The iPath Dow Jones-UBS Cotton Subindex Total Return ETN (NYSE:BAL), iPath Pure Beta Cotton ETN (NYSE:CTNN), Teucrium Corn Fund (NYSE:CORN) and Elements MLCX Grains Index Total Return ETN (NYSE:GRU) lost 10.46 percent, 9.25 percent, 9.06 percent and 7.91 percent, respectively.
Fund Flows Data: June 9 – June 16
Commodity ETF Weekly Flows By Asset Class
|% of AUM|
Top 5 Commodity ETF Creations
|AUM % Change|
|GDX||Market Vectors Gold Miners||129.36||6,322.90||2.09%|
|GDXJ||Market Vectors Junior Gold Miners||46.88||1,883.98||2.55%|
|ERX||Direxion Daily Energy Bull 3x||38.99||394.27||10.97%|
|UCO||ProShares Ultra DJ-UBS Crude Oil||30.49||266.58||12.92%|
|MOO||Market Vectors Agribusiness||26.21||5,278.38||0.50%|
Top 5 Commodity ETF Redemptions
|AUM % Change|
|XLE||Energy Select SPDR||-642.78||8,247.26||-7.23%|
|CU||First Trust ISE Global Copper||-202.15||241.35||-45.58%|
|XME||SPDR S&P Metals and Mining||-193.02||864.17||-18.26%|
|XOP||SPDR S&P Oil &
Gas Exploration & Production
Top 5 Weekly Performers (Excluding Leverage/Inverse, >1,000 Shares Traded)
|SGAR||iPath Pure Beta Sugar ETN||3.85%||18,751||6.58|
|SGG||iPath Dow Jones-UBS
Sugar Total Return ETN
|SBV||iPath Pure Beta S&P
|COW||iPath Dow Jones-UBS
Livestock Total Return ETN
|LSTK||iPath Pure Beta Livestock ETN||1.15%||2,200||4.98|
Bottom 5 Weekly Performers (Excluding Leverage/Inverse, >1,000 Shares Traded)
|GWO||ELEMENTS Credit Suisse
Global Warming ETN
|BAL||iPath Dow Jones-UBS
Cotton Total Return ETN
|CTNN||iPath Pure Beta Cotton ETN||-9.25%||19,731||5.86|
|GRU||ELEMENTS MLCX Grains
Total Return ETN
Top 5 Volume Surprises (>$50mm AUM)
|1 Week Average Volume||% of Average|
|CU||First Trust ISE Global Copper||384,001||7,334,669||382.01%|
|FAN||First Trust ISE Global Wind Energy||93,397||988,284||211.63%|
|FXN||First Trust Energy AlphaDEX||124,304||1,134,118||182.47%|
|MLPN||Credit Suisse Cushing 30 MLP||82,918||662,885||159.89%|
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.
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