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Commodities

Cash Leaves Cross-Commodity ETFs as Markets Slide

Molten copper. Photographer: Oliver Bunic/Bloomberg (Oliver Bunic/Bloomberg)

(Bloomberg) -- Investors pulled hundreds of millions of dollars from broad-based commodity ETFs last week, dialing back bets on raw materials prices amid concerns about the health of the world’s two largest economies. 

The outflows are the largest weekly reduction this year, according to data compiled by Bloomberg. The figures cover the biggest cross-commodity exchange-traded funds and products based on their assets in dollars. 

Commodity prices turned lower for the year last week, initially on concerns about the path for growth in China, the largest oil importer and a major buyer of other goods. Those moves have been compounded by weak US jobs data that fanned concerns the US economy is also slowing.

The Bloomberg Commodity Spot Index was down about 1% for the year as of Aug. 2. 

Invesco’s PDBC fund, the biggest cross-commodity ETF, posted its largest weekly withdrawal since 2022. 

(Corrects volume of outflow in story published Aug. 5 and removes reference to Legal and General product’s outflow.)

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