Energy saw mixed performance with oil trading around a $70-$85/bbl range and natural gas prices rebounding at the end of the half. ETC investors appeared to be adroitly trading the oil price range with long inflows rising at the bottom of the price range and long outflows and short positions increasing at the top. Positions were reduced in natural gas ETCs as prices rose.

· Industrial metals saw sharp declines as risk appetite fell and China growth concerns took their toll in Q2. Despite the sharp declines in Q2, the strength of the rally in 2009 meant that industrial metals as a group were still up over 20% on a 12 month basis. ETFS Short Copper saw record inflows in Q1 as some investors’ correctly hedged against price declines in Q2. Shorts have been reduced but remain high relative to history.

read more