Commodities' bullish run has gained a lot of attention. Since the end of April 2020, the Bloomberg Commodity index increased by 55% due to a variety of factors, such as stronger global economic growth and supply chain issues.
Commodity ETFs experience outflows
However, while investors poured money into commodity ETFs for most of last year, that began to change in October 2020. In that month, there were net outflows of $500 million globally, and there were net outflows in seven out of the next 10 months. Thus far, August's outflows have totaled $1.2 billion.
The outflows were largely driven by the precious metals ETF category. Broad-based commodity ETFs, another major grouping, have had steady inflows since at least the start of 2020.
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