While deflationary pressures have taken the shine off many precious metals and mining stocks this year, inflows into some commodity-based exchange-traded funds have continued to rise despite an uncertain global backdrop.
Todd Rosenbluth, director of research at VettaFi, told CNBC that “we’ve actually seen a rise in commodity ETFs over the last few weeks” Sima exist”Advantages of ETFs” on Monday.
Participation in precious metals commodity ETFs spiked in early May compared to the previous month, Rosenbluth said, according to VettaFi.
“The story is all about gold,” GraniteShares founder and CEO Will Rhind said on the same show Monday. “[It’s] The only major metal to remain green this year. “
Rhind said the rise was largely due to debt-ceiling negotiations and a potential default. The ongoing banking crisis remains, rising inflation and a weaker dollar are also positive factors for the precious metal, he said.
“Right now, gold does serve its role as a way for people to park their money in uncorrelated assets when they’re worried about what might happen,” Rhind said. [to] Hedge against what could happen with the debt ceiling. “
inflow SPDR Gold Shares Over the past month, it has surpassed $1.14 billion, according to FactSet.this iShares Gold Trust (IAU) and SPDR Gold Mini Share Trust (GLDM) Net inflows were $182 million and $222 million, respectively, over the same period.
But with a potential deal on the debt ceiling likely as early as this week, Rosenbluth suggested expanding exposure to the precious metals and mining sectors.
“Gold may not be in favor forever,” Rosenbluth said. “We also found that advisors are interested in active management of the commodity space. Neuberger Commodity Strategy ETF (NBCM) is another way to gain exposure to diversified commodities. “