Commodity exchange-traded products (ETPs) have experienced a strong couple of weeks and this trend is likely to remain even if commodity growth stalls, according to Lyxor's head of ETF strategy.
Last week Lyxor reported that assets in commodity ETPs outstripped fixed income for the first time in the European market, driven by rising precious metals prices. Assets in commodity ETPs reached €42.8 billion in the week to 19 August. Interest in commodities remained high in the fourth week of August, with Lyxor reporting that trading in commodity ETPs was up more than 71% on the previous week. But it is not just precious metals behind these figures. "Interestingly, there have also been some flows into broad, diversified commodities," says Nizam Hamid, head of ETF strategy at Lyxor...
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