Precious metals, notably gold and silver, received over 36% of inflows. Those funds were the SPDR Gold Trust (GLD), iShares Silver Trust (SLV), and iShares Gold Trust (IAU). The Invesco QQQ Trust (QQQ) and iShares iBoxx USD High Yield Corporate Bond ETF (HYG) also saw notable creations. On the redemptions side the bulk of outflows were from S&P 500 related ETFs. Those funds were the Vanguard S&P 500 ETF (VOO), SPDR S&P 500 ETF Trust (SPY), Real Estate Select Sector SPDR Fund (XLRE), and Financial Select Sector SPDR Fund (XLF), at over 45% of redemptions.
The worsening pandemic of 2020 is the driving catalyst behind one of the most incredible rallies the gold market has ever seen. At the close of trading in New York on Friday, bullion had climbed to $1,902.02 an ounce, some 30% higher than the low it hit in March and just 1% off a record high set back in 2011.
Governments are pushing through unprecedented stimulus packages and central bankers are printing money faster than they ever have before to finance that spending. There has also been a plunge in inflation-adjusted bond yields into negative territory in the U.S. and the dollar’s sudden decline against the euro and yen on revelations that most every country in the world has handled the pandemic better than the U.S.