HIGHLIGHTS 2021

HIGHLIGHTS 2021

Physically backed gold ETFs saw global outflows of 173 tonnes (t) (-US$9.1bn, -4.0% AUM) in 2021.

Collective gold holdings were down 5% to 3,570t for the year, while assets under management (AUM) in value terms dropped 9% to US$209bn as net outflows were compounded by a 4% contraction in the gold price.

Despite considerable outflows for the year, gold ETF holdings remain significantly above pre-pandemic levels, as they posted record inflows of approximately 875t (US$48bn) during 2020.

Losses in 2021 were driven by North American funds, which never recovered from their significant outflows in Q1, ultimately registering outflows of nearly US$11bn (-200t) by year-end.

The bulk of these outflows were from large US funds whose assets fluctuated in tandem with the gold price.

Conversely, European ETFs turned positive in the second half of 2021 amid rising inflation expectations, ending the year with marginal gains of US$264mn (0.7t).

Asian ETFs accounted for the vast majority of inflows among global funds, despite some weakness in Q2, adding close to US$1.5bn (20%) over the year.This especially rang true for Chinese-based funds, which made up more than 60% of total inflows for the region, driven by concerns over slowing economic growth and lower yield expectations as well as local investors taking advantage of a lower gold price.

Finally, low-cost ETFs attracted consistent inflows regardless of the direction of gold prices, increasing by 45% (63t, US$3.7bn).These funds now constitute in sum almost 6% of the global gold ETF market.

https://www.gold.org/goldhub/data/global-gold-backed-etf-holdings-and-flows/2021/december