Commodity ETF Flows: Energy And Precious Metals Fall Back Into Favor

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Includes: DGAZ, FXN, GAZ, GEX, GLD, GRN, IYE, JO, KWT, LIT, MXI, NAGS, NUGT, QCLN, RYE, TAN, UNG, UNL, URA, VDE, XLE, XME, XOP
by: Hard Assets Investor

By Drew Voros

Energy funds attract nearly $2 billion in new flows. Investors returned to commodity-related, exchanged-traded products over the last week, led by energy and precious metals, which saw nearly $2.4 billion of inflows into commodity ETPs.

Energy grabbed the lion's share of flows, pulling in $1.9 billion in new capital, followed by precious metals with $469 million, industrial metals with $7.8 million and agriculture with $5 million.

The only sector to see outflows was broad market (multicommodity), which saw $11.9 million flow out.

Commodity ETPs include exchange-traded funds (ETFs), exchange-traded notes (ETNs) and exchange-traded vehicles (ETVs).

ETP Inflows/Outflows

Energy funds dominated the top inflows, led by iShares U.S. Energy (NYSEARCA:IYE) with $794 million of inflows, a 65 percent jump in AUM; followed by SPDR Gold (NYSEARCA:GLD) with $347 million; First Trust Energy AlphaDex (NYSEARCA:FXN) with $341 million, a 224 percent increase; SPDR S&P Oil & Gas Exploration & Production (NYSEARCA:XOP) with $196 million; and Vanguard Energy (NYSEARCA:VDE) with $175 million.

Outflows were a mixed bag, led by Energy Select SPDR (NYSEARCA:XLE) with $128 million, followed by Direxion Daily Gold Miners Bull 3X (NYSEARCA:NUGT) with $47 million, SPDR S&P Metals and Mining (NYSEARCA:XME) with $45 million, VelocityShares 3X Inverse Natural Gas ETN (NYSEARCA:DGAZ) with $37 million, and iPath Dow Jones-UBS Coffee Total Return ETN (NYSEARCA:JO), which saw $35 million flow out.

ETP Performance

Various forms of energy funds outperformed: Global X Uranium (NYSEARCA:URA) surged 11.82 percent, followed by Guggenheim Solar (NYSEARCA:TAN) with a 6.69 percent advance, First Trust Nasdaq Clean Edge Green Energy (NASDAQ:QCLN) gained 6.47 percent, Market Vectors Solar Energy (NYSEARCA:KWT) rose 6.37 percent, and Market Vectors Global Alternative Energy (NYSEARCA:GEX) added 5.71 percent.

A big drop in natural gas prices took related funds down too. United States Natural Gas (NYSEARCA:UNG) fell 8.28 percent, iPath Dow Jones-UBS Natural Gas Total Return ETN (NYSEARCA:GAZ) dropped 7.62 percent, iPath Global Carbon ETN (NYSEARCA:GRN) gave up 6.86 percent, Teucrium Natural Gas (NYSEARCA:NAGS) slipped 5.78 percent, and United States 12-Month Natural Gas (NYSEARCA:UNL) lost 5.50 percent.

Fund Flows Data: (February 21 - 27, 2014)

Commodity ETF Weekly Flows By Sector

Net Flows
($,mm)
AUM
($, mm)
% of AUM
Agriculture 4.90 8,657.67 0.06%
Broad Market -11.93 12,707.43 -0.09%
Energy 1,913.52 44,437.36 4.31%
Industrial Metals 7.79 1,276.31 0.61%
Precious Metals 468.78 64,764.99 0.72%
Total: 2,383.05 131,843.76 1.81%
Click to enlarge

Top 5 Commodity ETF Creations

Ticker Name Net Flows
($,mm)
AUM
($, mm)
AUM % Change
IYE iShares U.S. Energy 793.87 2,019.94 64.75%
GLD SPDR Gold 346.65 34,412.92 1.02%
FXN First Trust Energy AlphaDEX 340.82 492.78 224.27%
XOP SPDR S&P Oil & Gas Exploration & Production 196.13 1,154.07 20.47%
VDE Vanguard Energy 174.78 2,710.67 6.89%
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Top 5 Commodity ETF Redemptions

Ticker Name Net Flows
($,mm)
AUM
($, mm)
AUM % Change
XLE Energy Select SPDR -127.55 8,266.69 -1.52%
NUGT Direxion Daily Gold Miners Bull 3X -46.83 730.61 -6.02%
XME SPDR S&P Metals and Mining -45.28 638.95 -6.62%
DGAZ VelocityShares 3X Inverse Natural Gas ETN -36.53 402.94 -8.31%
JO iPath Dow Jones-UBS Coffee Total Return ETN -34.67 172.25 -16.76%
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Top 5 Weekly Performers, Excluding <1,000 Shares Traded

Ticker Name Weekly
Performance
Weekly Volume AUM
($, mm)
URA Global X Uranium 11.82% 2,473,783 208.18
TAN Guggenheim Solar 6.69% 3,695,685 518.69
QCLN First Trust NASDAQ Clean Edge Green Energy 6.47% 1,204,024 174.04
KWT Market Vectors Solar Energy 6.37% 48,512 27.08
GEX Market Vectors Global Alternative Energy 5.71% 82,499 105.60
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Bottom 5 Weekly Performers, Excluding <1,000 Shares Traded

Ticker Name Weekly
Performance
Weekly Volume AUM
($, mm)
UNG United States Natural Gas -8.28% 131,814,174 813.36
GAZ iPath Dow Jones-UBS Natural Gas Total Return ETN -7.62% 747,112 35.84
GRN iPath Global Carbon ETN -6.86% 221,298 2.08
NAGS Teucrium Natural Gas -5.78% 19,785 2.02
UNL United States 12 Month Natural Gas -5.50% 129,496 21.99
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Top 5 Volume Surprises, Funds >$50 mm AUM

Ticker Name Average Volume
(30 Day)
Weekly Volume % of Average
RYE Guggenheim S&P Equal Weight Energy 40,202 847,973 421.86%
LIT Global X Lithium 41,060 712,692 347.15%
MXI iShares Global Materials 81,171 1,140,335 280.97%
FXN First Trust Energy AlphaDEX 1,176,880 15,584,388 264.84%
IYE iShares U.S. Energy 1,925,696 22,141,372 229.96%
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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.