Investors have poured the most money on record into commodity ETFs this quarter, but that may be masking growing investor caution on raw materials.

Long-only exchange-traded funds linked to broad baskets of energy, metals and agricultural products attracted $2.66 billion this quarter, Bloomberg Intelligence estimates show. While that’s the largest quarterly inflow in data going back to 2005, the stream of money slowed in March as the U.S.-China trade row clouded the outlook for economic growth. That uncertainty boosted haven demand for gold, which accounts for more than 12 percent of the Bloomberg Commodity Index—a benchmark for many of these long ETFs.

“It’s primarily the precious-metals side” that is attracting money in commodities, said Mariann Montagne, a portfolio manager at Gradient Investments LLC, which oversees $2 billion including bullion-backed ETFs. “People are turning to gold as a hedge against inflation, but it’s also tied into all the tariff talk, which initially had been very broad-brushed in nature.”

  • Precious metals-backed ETFs attracted $1.79 billion this quarter through March 28, set for the biggest quarterly inflow since the three months ended June.
    • Inflows were boosted by the $1.22 billion that were added in March, with gold making up $1.14 billion of that.
    • Gold demand increased after U.S. President Donald Trump announced tariffs on imports of steel and aluminum imports, and duties on $50 billion of shipments from China.
  • Industrial metals have lured about $240 million this quarter, the most since 2011
    • Inflows were trimmed by over $9 million in outflows this month amid concerns that a trade war could slow global growth, damping demand.
  • Outflows in energy-linked ETFs rose to $2.95 billion this quarter, the most since the quarter ended September.
    • Investors are cashing in after crude oil rallied to the highest in three years.
  • Agriculture ETF inflows have reached $160 million this quarter, the highest since the third quarter, as gains in January and February outweighed an outflow this month.
  • Total inflows into all commodity-linked ETFs have reached $1.9 billion, the highest since the second quarter of 2017.