ETFs and ETCs in heyday - negotiable prime Matters in bag
28-01-2009 golden marketThe negotiable prime matters in bag (ETC) - values that rise and fall down with the oil, gold and other products - happen in his best moment to invest on the volatile markets, said on Monday the chief of ETF Securities Ltd.
Hector McNeil, associate manager of the company who handles popular negotiable funds in bag (ETF) like Physical Gold and Brent 1-Month, said that the value of the assets was quadrupled in 2008 and they seemed ready to increase even in 80 % again this year.
The value of assets of ETF Securities under management is now in about 8.000 million dollars, over 2.500 million dollars of one year behind and 6.000 million dollars at the end of November.
“Since we have added 2.000 million dollars in only one month and a half, certainly I hope that the assets under management should be in about between 10.000 and 15.000 million dollars in prime matters at the end of this year”, he said to Reuters McNeil in an interview.
“Last two days of operations, except Friday, have brought in 500.000 million dollars for the door, of which 60 % has been in gold and 30 % in energy. This has been a record week”, he added.
The ETFs and ETCs are values that continue the value of an underlying instrument, like the golden ingot or the futures of oil like the American crude oil or raw Brent del Mar Norte.
Small investors can buy only an ETF or ETC, that might be so small as 30-40 dollars, while big funds can take very important positions on a market that has his restricted liquidity.
ETC more active is the gold and ETF Securities has more than 5.000 million dollars of the precious metal in the vault, giving support for his ingots contracts.
But the contracts of energy - oil, natural gas, petroleum products and carbon - are growing quickly three the enormous movements of the markets of energy during last year.
ETF Securities uses Royal Dutch Shell like his counterpart for some crude oil contracts.
The oil prices reached a maximum for almost 150 dollars for barrel in July of last year and since then they have fallen down in more than 70 % because the deepening of the world recession has affected hard to the world energy demand.
“There is probably close to 2.000 to 3.000 million dollars that occur in the whole Europe every week in negotiable prime matters in bag, of which of 33 to 40 % they perform energy, principally oil”, he said. “The appetite for energy has grown dramatically. We have never had so many actions in number”, it added.
www.etfsecurities.com
28-08-2009 Reuters
