China’s Buying Spree: A Boon for Commodity ETFs?
Wednesday, February 10th, 2010
Tom Lydon (ETF Trends) submits:
China’s lust for raw materials seems rather insatiable these days as the country buys and invests in them at every opportunity. But the increased demand for raw materials may be a boon for commodities-related exchange traded funds .
China Investment Corp., the country’s sovereign wealth fund, purchased 2 million shares worth $78.6 million, or 3.48% of total shares, of United States Oil (NYSEArca: USO), and acquired 1.45 million shares worth $155.6 million, or 0.4% of total shares, of SPDR Gold Shares (NYSEArca: GLD), report Christian Schmollinger and Kyoungwha Kim for BusinessWeek. China is now the fourth-largest holder of USO. China bought a range of ETFs, covering everything from Japan to global materials funds, in an apparent bet on the global recovery.
