September 8, 2017

Investors Flock to Natural Resources Funds in Spite of Multiple Hurricanes

by Patrick Keon

Natural resources funds ((including both mutual funds and exchange-traded funds [ETFs]) took in over $554 million of net new money for Thomson Reuters Lipper’s fund-flows week ended Wednesday, September 6. This was only the group’s second weekly net inflow in the past two months and its second largest weekly net inflow of 2017, trailing only the $568 million for the week ended June 14.

Investors chose to ignore the initial impact of Hurricane Harvey on the oil refinery industry in the Gulf Coast region and poured money into natural resources funds. Oil prices took a hit in reaction to the damage Hurricane Harvey inflicted on Texas but bounced back when refineries opened early the following week, easing fears of a fuel supply shortage. Fuel shortage fears were not gone for long, though, as Hurricane Irma (the strongest Atlantic Ocean hurricane on record) set its sights on Florida.

ETFs in Lipper’s Natural Resources Funds peer group, taking in over $569 million of net new money, were responsible for all the net-positive flows for the week. The largest contributors to the net inflows among individual ETFs were Energy Select Sector SPDR Fund (XLE, +$367 million) and SPDR S&P Oil & Gas Exploration & Production ETF (XOP, +$141 million).

Thomson Reuters Lipper delivers data on more than 265,000 collective investments in 61 countries. Find out more.

 

 

 

 

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