‘Risk-off’ assets on the up with investors

Global and domestic market volatility has seen investors flock to traditional 'safe haven' and defensive asset classes.

According to the BetaShares Australian ETF Review for February this year, share market volatility – which saw the Aussie and international markets dip by 2 per cent – drove up the appetite for exposure to 'risk-off' assets, such as gold bullion.

“Gold exposures have recently had renewed demand levels, with exchange-traded products over gold receiving inflows in the past few months, something we have not seen in this industry for a number of years,” said BetaShares managing director Alex Vynokur.

“Gold is traditionally seen as a safe haven asset and the recent spike in investor interest demonstrates that a number of investors are turning to gold as a store of value as some globally significant central banks are pursuing a negative interest rate policy,” Mr Vynokur added.

The report also found that the Australian exchange-traded fund (ETF) industry has increased by $223 million to $20.6 billion in total funds under management for February as investors continue to search for less-risky asset classes.

New money accounted for 80 per cent of the growth recorded, according to the BetaShares Australian ETF Review for February this year.

 

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