The Financial Times came out with a special report on ETFS today. It said the industry’s breakneck growth rate slowed as it faced adversity last year in the form of weak stock markets, and media hostile for the first time and “unprecedented criticisms from regulators.” And while net inflows of cash fell year-over-year, it still market a striking contrast to the “substantial net outflows” mutual funds saw on both sides of the Atlantic.
Even as investors sold moved out of stocks, especially in Europe, exchange traded products (ETPs) moved into the role of a risk reducer as they were used as a way to buy gold. Gold ETFs in Europe saw inflows of 730 million euros. So are this year, the SPDR Gold Shares (GLD) in the U.S. has seen inflows of $1.32 billion, compared with net outflows of $518 billion for all of last year.