London, 14 October 2010

ETF Securities ETC Flow and Return Highlights:

· Physically-backed precious metal ETCs surge to fresh record high, on currency and recovery risks. Investor concern over potential currency wars on expectations of further QE activities, coupled with poor economic fundamentals, has generated the largest flows into precious metal ETCs in eight weeks.

Physically backed gold ETCs have experienced the largest net inflows in 7 weeks and net inflows have been positive in eight out of the past ten weeks, totalling nearly $700mn over the period. Investors also appear to be looking for exposure to the rapid growth of emerging markets via platinum and palladium.

With the Chinese auto market continuing to strengthen, palladium has rallied over 40% ytd, with platinum lagging somewhat, with gains of 14%. Accordingly, physically-backed palladium ETCs have posted their highest inflows in 38 weeks.

Largest net outflows in oil in 18 months, with investors taking profits as oil trades at the highs of $70-$85/barrel. Investors continue to trade tactically in oil markets, reducing positions as oil nears the top of its range ($85 per barrel) over the past year.

ETFS Crude Oil (CRUD) and ETFS Leveraged Crude (LOIL) saw combined outflows of $113mn, the largest since early May 2009. Elsewhere in the complex, net inflows into natural gas ETCs were the lowest in 10 weeks, totalling just $0.2mn, as natural gas prices wallow near 11-month lows.

· ETFS Agriculture DJ-UBSCISM (AIGA) saw its eleventh consecutive week of net outflows, bringing withdrawals to $278mn over this period. Further strong growth in grain prices as harvest conditions decline on the back of extreme weather conditions in the US have prompted investors to reduce exposure to the agriculture sector.

However, while YTD net flows have been negative, this appears to be tactical positioning, given the strong growth in AUM over the past 12 months (16%). The most pronounced weekly withdrawals were in ETFS Corn (CORN) and ETFS Sugar (SUGA), where investors withdrew $5.6mn and $4.3mn, respectively.

Ends --

www.etfsecurities.com

Attachments:

WeeklyReportETC081010.pdf

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