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.