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Thursday, 30th July 2009 (1366 views)

Gold-related exchange traded funds (ETFs) have attracted more than $13 billion (£7.87 billion) from investors so far this year, according to new research.

Data from Strategic Insight's Simfund database shows gold-focussed ETFs are leading the sector in terms of bringing in new cash, Reuters reports.

ETFs are a basket of shares, bonds, commodities or other securities that are traded on stock exchanges. They offer investors the benefits of owning shares without the risk associated with holding individual stocks.

Strategic Insight senior research analyst Loren Fox said gold ETFs are proving popular with investors in the current climate because they offer a straightforward way to invest in the precious metal, which is traditionally seen as a safe haven during periods of economic turbulence.

Overall, $35 billion has flowed into ETFs since the start of the year. By comparison, mutual funds have seen withdrawals of $49 billion.

According to figures from Barclays Global Investors, worldwide ETF assets stood at $789.04 billion at the end of the second quarter of 2009.

Strategic Insight has forecast that this figure will reach $1 trillion by 2011.

 

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