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Gold ETC issuers in Europe âcould learnâ from US peers
Europe s largest gold ETC has seen outflows of $800m since the start of the year By Jamie Gordon, 12 May 2021
Gold exchange-traded commodities (ETCs) boomed in 2020 thanks to macro-economic uncertainty and reduced opportunity costs, however, future success will be influenced by how closely European gold ETCs continue adopting the characteristics of their US counterparts, according to a report by Cerulli Associates.
When gold ETCs were introduced 18 years ago, North American products dominated the market. In contrast, the past two years have seen European gold ETCs claim the spotlight with the continentâs gold funds claiming 43% of global market share by the end of February 2021.
Europe s Gold ETF providers could learn from US peers
Europe s gold exchange-traded fund (ETF) market saw a surge in demand in 2020 as investors sought safe-haven assets during the uncertainty sparked by the coronavirus pandemic, Brexit, and other geopolitical concerns.
However, with future demand dependent on how various factors play out, European gold ETF providers could benefit from adopting some of the steps taken by their North American counterparts, according to the latest Cerulli Edge Europe Edition.
Related articles Over the past two years, there has been phenomenal growth in the global ETF market, particularly in Europe. When gold-backed ETFs were introduced around 17 years ago, they were dominated by North American funds, which captured a substantial portion of marketshare.
European family offices face tricky balancing act
Family offices in Europe are continuing to review their portfolios in response to the effects of the COVID-19 pandemic, according to the latest issue of
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Family offices need to balance liquidity and returns for clients spanning multiple generations.
The factors family offices are weighing include the strong likelihood of COVID-19 remaining the dominant market factor in 2021 and beyond and the prospect of returns over the next decade being less robust than those of the past 10 years. Cerulli believes that such considerations will see some family offices increase the risk in their portfolios to ensure that they can meet their long-term return objectives.