Asia gold ETFs buck trend and attract strong inflows

SourceFinancial Times
SectorFinancial Markets
CountryMiddle east

Gold exchange traded funds have continued to attract strong inflows in Asia this year, as many investors hedge against concerns of widespread inflation and protect against uncertainties around the trajectory of the pandemic and economic recovery.

As of end-June, Asia-domiciled gold ETFs had posted net inflows of $1.6bn, making it the only region to register net inflows. China, India and Hong Kong-domiciled gold ETFs have been the main driver of the inflows.

In contrast, there were signifcant outflows from the funds in the US and in Europe, with total net outflows reaching $8.5bn and $3.6bn respectively over the same period, according to Morningstar data.

China accounted for the highest proportion of the flood of money into Asian gold ETFs, with 10 funds raking in more than $651m during the first half of 2021. The best-selling Chinese ETF, HuaAn Fund Management’s Huaan Gold ETF Fund, which has $1.7bn in assets under management, contributed inflows of $304m.

Investors in Hong Kong and India also poured money into gold more...