Hedge fund and commodities ETFs set for growth

ETFs tracking commodities and hedge fund indices are the best placed to receive new inflows this year, a survey by db x-trackers reveals.

The survey questioned investment professionals, including fund managers and investment advisers, across Europe.

Over half of respondents (54%) indicated commodities as the area with the highest potential for increased use, while 46% accessed hedge fund replication through ETFs.

Some 64% of the professionals surveyed say only between one percent and 25% of all their clients were currently using ETFs, with 88% of investment professionals saying they will increase use.

Manooj Mistry, head of db x-trackers UK, says: "With a majority of respondents noting that less than 25% of their clients are currently using ETFs, this feedback confirms there is room for growth in utilising the products across European investment portfolios."

Other findings show synthetic replication is favoured over full replication, at around 49% compared to 44%.

Results were based on responses by 361 individuals from European countries, including Germany, the UK, Norway, Greece, Poland, Denmark and Switzerland.