European investors have started investing in commodity ETFs instead of government bond ETFs following the sovereign debt crisis, Financial Times reports. With this, assets held in commodity ETFs have for the first time exceeded those in fixed-income ETPs, according to a research carried out by Lyxor. At the end of July, commodity ETPs listed in Europe had assets of €42.8 billion, compared to fixed income ETPs with assets of €41.4 billion. Over the past one year, investors have withdrawn €1.4 billion from European-listed government bond ETFs. However, high-yield ETFs saw inflows of €0.7 billion, corporate bond ETFs €0.7 billion and emerging market bond ETFs €0.3 billion.

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