Exchange traded product trends hit by markets

Flows were heavy towards gold and fixed income exchange traded products (ETPs) in the past week reports Exchange Traded Funds Magazine, while today’s meltdown of indices in the US is causing technical grief for ETPs linked to the performance of these.

Figures from provider ETF Securities up to and including the past week show that $250m has flowed into its gold ETPs in the year to date. Inflows of $155m were seen in the week to Thursday 4 August. This is in sharp contrast to the first six months of 2011, when the provider saw net outflows from such products, reports ETFM.

iShares has reported increased inflows to its German government bond and UK gilts ETPs. However, iShares adds that while it has seen increased volumes today (8 August) it has not seen any significant inflows or redemptions, ETFM adds

US indices

Following the opening of trading in US markets this afternoon, ETF Trends reports that the high level of selling which is forcing down the Dow Jones Industrial Average and S&P 500 is also hitting exchange traded funds (ETFs) indexed to these indices.

Technical trading in particular has been hit by the falls, which has seen such ETFs fall below their 200-day moving average. Other technical support levels have been reported broken by the downward direction of US equity markets in the past few trading days.

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