Exchange-traded products tracking diversified broad commodity indices saw global assets increase by $5.2bn in Q1 2011, marking the largest quarterly inflows for the sector on record, ETF Securities says.
The firm's forthcoming Global Commodity ETP Quarterly shows the inflows also represent over half the asset growth across all commodity ETPs during the first quarter. Rising food and energy prices have been credited as accounting for up to half the increase in headline inflation rates in the US and China. With agricultural inventories at historically low levels and social upheaval across the MENA region driving up oil prices, ETFS analysts say investors appear to be using commodity ETPs as a hedge against continuing price increases. The firm's own ETFS Forward All Commodities DJ-UBS...
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