ETF Securities says gold ETC performed best in 2008
LONDON Jan 14 (Reuters) - ETF Securities said its physical gold exchange-traded commodity (PHAU.L) was its best performing long ETC in 2008, posting a 4 percent rise in U.S. dollar terms at a time when most assets were falling.
Gold was top of the company's list of top-performing long ETCs, outstripping its closest rival, the Precious Metals DJ AIGCI ETC (AIGP.L), which declined 4 percent.
ETCs are funds which issue securities backed by physical stocks of a commodity, such as gold.
The ETC's positive performance tracked gains in spot gold XAU= prices, which posted a small year-on-year gain on the back of rising risk aversion, which has boosted buying of the precious metal as a haven from risk.
"ETFS Physical Gold has been a particularly strong outperformer, with 2008 returns up 4 percent in U.S. dollar terms -- marking the eighth consecutive year of positive returns -- and up 44 percent in GBP and 11 percent in EUR (terms)," Nicholas Brooks, ETF Securities' head of research said in a note.
"In 2009, safe haven assets such as gold and less economically sensitive commodity sectors could see the strongest flows," he continued.
(Reporting by Jan Harvey; Editing by David Evans)
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