ETF 2012 early 2013

2012 was characterized by a combination of fluctuating investor views on the global growth and sovereign debt outlook. In the first quarter of 2012, rising growth expectations caused investors to increase weightings in more cyclical commodities. However a weakening of US and China growth indicators and increased concerns about Europe’s sovereign debt issues led to net outflows from commodity ETPs in 2Q 2012. In 3Q and 4Q investor demand for gold ETPs soared as investors sought to hedge against worst case US fiscal cliff and debt ceiling scenarios as well as an intensification of central bank quantitative easing policies. The second half of the year also saw a strong pick-up in demand for more cyclical commodity ETPs as US and China economic indicators began to improve.