Mondo Visione Worldwide Financial Markets Intelligence

FTSE Mondo Visione Exchanges Index:

ETF Securities’ Commodity ETC Assets Rise $9bn In 2009 To $16bn Qs Demand For Gold, Energy, Agriculture And Other Hard Assets Surge

Date 14/01/2010

  • Record breaking year for commodity ETCs, with assets up over $9bn (2.3X end-2008 levels) to $16bn
  • ETFS Copper (COPA) up 130% and ETFS Physical Palladium (PHPD) up 114%, 2 of top 5 best performing long ETFs/ETCs listed on the London Stock Exchange
  • ETFS Industrial Metals (AIGI) best performing commodity basket in 2009, up 80%
  • Physically-backed precious metal ETC holdings – gold, silver, platinum, palladium - reach historic highs
  • ETFS Forward All Commodities DJ-UBSCI-F3SM (FAIG) up 263% over the past 10 years, making commodities the top performing major asset class over the period

Commodities bounced back strongly in 2009 following the recent credit crisis, with ETFS Forward All Commodities DJ-UBSCI-F3SM (FAIG) up 23% over the year and 263% over the past 10 years. ETFS Industrial Metals (AIGI) was the best performing sector, up 80% over the past year. Industrial metals significantly outperformed developed market equities, outperforming the Dow Jones Euro STOXX 50 by 48 percentage points in 2009. Industrial metals have also outperformed bonds, cash and real estate over the same period as the global recovery has become more entrenched and market appetite for plays on the recovery has accelerated. The precious metals sector was the next best performing major sector, with ETFS Physical Silver (PHAG), ETFS Physical Platinum (PHPT) and ETFS Physical Palladium (PHPD) all returning over 50% in 2009.

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