Interest in the gold market has spiked as a result of COVID-19 however there have been dislocations between spot and derivative instruments as physical delivery became challenging. This has driven up interest in gold exchange traded products (ETPs); flows have also increased in environmental, social and governance (ESG) based exchange traded funds (ETFs) which reflect growing interest in longer-term, sustainable business investments.
Jim Goldie, head of capital markets for EMEA at Invesco, highlights the chief trends that are driving investment in ETFs and ETPs today, but also the impact of regulation on ETF/ETP trading that may change the mechanics of buying, selling and settling exchange-traded instruments.