Gold and Oil Back In Favour As Geopolitical Risks Rise. Geopolitical risk took another lurch for the worse last week, with Russia imposing a full ban on food imports and the US intervening in Iraq. While most macro data continues to point to a pick-up in global growth, benefiting cyclical assets, investors remain jittery and largely on the sidelines. With the geopolitical situation likely to remain tense, we expect defensive assets to continue to see strong demand in the near-term.
Gold and oil back in favour as geopolitical risks linger. Total inflows into gold and oil ETPs reached US$223mn and US$82mn respectively over the past month as geopolitical risks in Russia and the Middle East cloud the positive global economic outlook. The US authorised limited air strikes in Iraq last week, while Russia banned imports of food from the EU and the US, increasing risk aversion. While oil production and export facilities in southern Iraq have yet to be affected, a further push by ISIS into the south would likely trigger another spike in oil prices. With the geopolitical situation expected to remain tense, demand for defensive assets is likely to remain strong. Meanwhile, ETFS Physical Silver (PHAG) saw US$8.5mn of outflows as the silver price came under pressure last week. Near-term headwinds are likely to continue to weigh on silver until it is clear that industrial demand is coming through. With the US manufacturing ISM rising to its highest level since 2011 and China demand picking up, we anticipate that industrial demand support will ultimately offset negative pressure from expectations of rising real interest rates.
Copper and aluminium receive combined inflows of US$127mn as investors buy into China’s growth story. While weak China’s import data and heightened geopolitical risks weighed on most industrial metal prices last week, growth in the world’s second largest economy remains robust and with strong government support the industrial metal rally looks set to continue. Stronger US growth combined with a rebound in Chinese manufacturing data and more decisive monetary stimulus in the euro area should continue to be supportive of commodity prices, metals in particular, in the coming months.
Long wheat ETPs receive US$2.7mn of inflows as abundant rainfall in Europe decreased the availability of high quality wheat. Wheat prices reacting strongly to the news and were up 5.9% last week, after having lost over 7% since the beginning of the year. Long cotton ETPs also saw inflows last week, totalling US$2.6mn, on expectations of a drought in Australia, the world’s cotton 3rd largest cotton exporter. At the same time, investors reduced their coffee exposure, with long and leveraged coffee ETPs seeing over US$5mn of outflows, as price plummeted 5.7% last week.
Key events to watch this week
Industrial production statistics for a number of countries will be coming out this week, with China, the US and the Eurozone’s likely to be watched closely. Bank of England Inflation Report will also be looked at by investors, as inflationary pressure might prompt an earlier-than-expected rate hike.
Important Information
This communication has been provided by ETF Securities (UK) Limited (”ETFS UK”) which is authorised and regulated by the United Kingdom Financial Conduct Authority.
Det betyder att det går att handla andelar i denna ETF genom de flesta svenska banker och Internetmäklare, till exempel Nordnet, SAVR, DEGIRO och Avanza.
Amundi S&P Global Health Care ESG UCITSETF DR EUR (D) (WELG ETF) med ISIN IE000JKS50V3, strävar efter att spåra S&P Developed Ex-Korea LargeMidCap Sustainability Enhanced Health Care-index. Det S&P-utvecklade ex-Korea LargeMidCap Sustainability Enhanced Health Care-indexet spårar stora och medelstora företag från hälso- och sjukvårdssektorn. Aktierna som ingår filtreras enligt ESG-kriterier (miljö, social och bolagsstyrning).
Den börshandlade fondens TER (total cost ratio) uppgår till 0,18 % p.a. Amundi S&P Global Health Care ESG UCITSETF DR EUR (D) är den billigaste ETF som följer S&P Developed Ex-Korea LargeMidCap Sustainability Enhanced Health Care-index. ETFen replikerar det underliggande indexets prestanda genom fullständig replikering (köper alla indexbeståndsdelar). Utdelningarna i ETFen delas ut till investerarna (Årligen).
Amundi S&P Global Health Care ESG UCITSETF DR EUR (D) är en mycket liten ETF med 17 miljoner euro förvaltade tillgångar. ETFen lanserades den 20 september 2022 och har sin hemvist i Irland.
Investeringsmål
AMUNDI S&P GLOBAL HEALTH CARE ESG UCITSETF DR – EUR (D) försöker replikera, så nära som möjligt, resultatet av S&P Developed Ex-Korea LargeMidCap Sustainability Enhanced Health Care Index (Netto Total Return Index). Denna ETF har exponering mot stora och medelstora företag i utvecklade länder. Den innehåller uteslutningskriterier för tobak, kontroversiella vapen, civila och militära handeldvapen, termiskt kol, olja och gas (inkl. Arctic Oil & Gas), oljesand, skiffergas. Den är också utformad för att välja ut och omvikta företag för att tillsammans förbättra hållbarhet och ESG-profiler, uppfylla miljömål och minska koldioxidavtrycket.
Det betyder att det går att handla andelar i denna ETF genom de flesta svenska banker och Internetmäklare, till exempel DEGIRO, Nordnet, Aktieinvest och Avanza.
Amundi Global Corporate Bond UCITSETF investerar globalt i företagsobligationer med fast ränta, denominerade i lokal valuta och har en investment grade-rating. De måste ha en återstående löptid på minst ett år.
Andelsklassen är valutasäkrad mot amerikanska dollar och delar ut avkastningen.
Produktutbudet inom Deutsche Börses ETF- och ETP-segment omfattar för närvarande totalt 2 405 ETFer, 198 ETCer och 256 ETNer. Med detta urval och en genomsnittlig månatlig handelsvolym på mer än 21 miljarder euro är Xetra den ledande handelsplatsen för ETFer och ETPer i Europa.