Commodity ETF Flows: Gold Funds Outperform, Inflows Into Energy And Metals

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Includes: BARL, DBC, DJP, GDXJ, GGGG, GLD, GWO, IAU, JJE, NIB, OIH, RJI, SCO, SIL, SLVP, UNG, USO, WEAT, XLE, XOP
by: Hard Assets Investor

Last week's spike in gold prices lifted precious metals funds, but will it last after this week's fallback?

Investors streamed into energy and precious metals funds, gold in particular, as more than $1.1 billion in new investment capital flowed into commodity-related, exchanged-traded products this past week ending Thursday.

As has been the case for two weeks now, energy funds attracted the most inflows in the assets class, this time with $797 million in new capital. Precious metals followed, with $519 million. Those healthy inflows offset the other sectors that saw net outflows. Broad market (multicommodity) funds saw $138 million in outflows, followed by agriculture, with $43 million and industrial metals, which lost $3 million in outflows.

Exchange-traded products (ETPs) include exchange-traded funds (ETFs), exchange-traded vehicles (ETVs) and exchange-traded notes (ETNs)

ETP Inflows/Outflows

The Energy Select SPDR (NYSE Arca: XLE) attracted the most inflows for the third-straight week, with $367 million in new investment capital, followed by SPDR Gold (NYSE Arca: GLD) with $235 million, United States Oil (NYSE Arca: USO) with $197 million, iShares Gold Trust (NYSE Arca: IAU) with $100 million and Market Vectors Oil Services (NYSE Arca: OIH) with $93 million in inflows.

On the other side of the coin, the PowerShares DB Commodity Tracking (NYSE Arca: DBC) led redemptions, with $120 million in outflows, followed by SPDR S&P Oil & Gas Exploration & Production (NYSE Arca: XOP) with $48 million, ProShares UltraShort DJ − UBS Crude Oil (NYSE Arca: SCO) with $45 million, iPath Dow Jones-UBS Commodity Total Return ETN (NYSE Arca: DJP) with $41 million and Elements Rogers International Commodity-Total Return ETN (NYSE Arca: RJI), with $26 million in outflows.

ETP Performance

Riding the back of gold's biggest one-day advance in three years, precious metals funds dominated the top performers list. The Global X Pure Gold Miners (NYSE Arca: GGGG) clearly outperformed, with a jump of 10.49%, followed by Market Vectors Junior Gold Miners (NYSE Arca: GDXJ) gaining 7.92%, Global X Silver Miners (NYSE Arca: SIL) tacking on 7.51% and iShares MSCI Global Silver Miners (NYSE Arca: SLVP) chalking up a 6.43% increase.

The lone nonmetal fund, iPath Dow-Jones UBS Cocoa Total Return ETN (NYSE Arca: NIB), took the fourth spot, with an increase of 7.05%.

Energy funds populated the worst performers, with the Morgan Stanley S&P 500 Oil Hedged ETN (NYSE Arca: BARL) falling 9.27%, followed by Elements Credit Suisse Global Warming ETN (NYSE Arca: GWO) shedding 7.14%, United States Natural Gas (NYSE Arca: UNG) declining 5.84% and iPath Dow Jones-UBS Energy Total Return ETN (NYSE Arca: JJE) dropping 4.63%. The lone nonenergy funds, Teucrium Wheat (NYSE Arca: WEAT), came in fifth, losing 4.31%.

Fund Flows Data: (June 1 - June 7, 2012)

Commodity ETF Weekly Flows By Sector

Net Flows
($,mm)
AUM
($, mm)
% of AUM
Agriculture -42.54 9,476.33 -0.45%
Broad Market -138.18 12,070.98 -1.14%
Energy 797.43 29,293.64 2.72%
Industrial Metals -3.24 1,341.27 -0.24%
Precious Metals 518.67 102,218.64 0.51%
Total: 1,132.14 154,400.87 0.73%
Click to enlarge

Top 5 Commodity ETF Creations

Ticker Name Net Flows
($,mm)
AUM
($, mm)
AUM % Change
XLE Energy Select SPDR 366.87 6,752.23 5.75%
GLD SPDR Gold 234.67 65,794.08 0.36%
USO United States Oil 197.04 1,243.66 18.83%
IAU iShares Gold Trust 100.10 9,193.97 1.10%
OIH Market Vectors Oil Services 92.98 1,169.38 8.64%
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Top 5 Commodity ETF Redemptions

Ticker Name Net Flows
($,mm)
AUM
($, mm)
AUM % Change
DBC PowerShares DB Commodity Tracking -119.72 5,364.43 -2.18%
XOP SPDR S&P Oil & Gas Exploration & Production -48.12 750.21 -6.03%
SCO ProShares UltraShort DJ-UBS Crude Oil -44.69 75.58 -37.16%
DJP iPath Dow Jones-UBS Commodity Total Return ETN -41.14 1,954.89 -2.06%
RJI ELEMENTS Rogers International Commodity - Total Return ETN -26.13 584.83 -4.28%
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Top 5 Weekly Performers, Excluding <1,000 Shares Traded

Ticker Name Weekly
Performance
Weekly Volume AUM
($, mm)
GGGG Global X PURE Gold Miners 10.49% 103,196 4.36
GDXJ Market Vectors Junior Gold Miners 7.92% 31,853,223 2,244.89
SIL Global X Silver Miners 7.51% 1,348,943 291.62
NIB iPath Dow Jones-UBS Cocoa Total Return ETN 7.05% 83,638 23.89
SLVP iShares MSCI Global Silver Miners 6.43% 44,390 1.96
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Bottom 5 Weekly Performers, Excluding <1,000 Shares Traded

Ticker Name Weekly
Performance
Weekly Volume AUM
($, mm)
BARL Morgan Stanley S&P 500 Oil Hedged ETN -9.27% 7,500 9.20
GWO ELEMENTS Credit Suisse Global Warming ETN -7.14% 8,124 0.00
UNG United States Natural Gas -5.84% 45,671,841 891.46
JJE iPath Dow Jones-UBS Energy Total Return ETN -4.63% 12,541 11.21
WEAT Teucrium Wheat -4.31% 10,500 4.48
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Top 5 Volume Surprises, Funds >$50 mm AUM

Ticker Name Average Volume
(30 Day)
Weekly Volume % of Average
AGOL ETFS Physical Asian Gold 530 14,844 560.43%
PAGG PowerShares Global Agriculture Portfolio 16,860 205,299 243.54%
DGL PowerShares DB Gold 157,680 1,861,405 236.10%
FIW First Trust ISE Water 21,457 213,161 198.69%
FXN First Trust Energy AlphaDEX 57,105 468,998 164.26%
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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.