In recent weeks, commodity funds have seen an influx of several billion dollars, a stark reversal from the brutal forced selling that dominated the second half of last year.

Most of the money has flowed into long-only vehicles -- funds that bet on prices to rise -- suggesting a combination of investors' revived confidence and portfolio rebalancing. This wave of fresh buying is partly behind the rally in some commodities that petered out a few days ago, and could bring more liquidity into the market.


Among commodities, oil and gold funds are among those seeing the most interest. Last month, the United States Oil Fund, the largest oil ETF, gained $2.06 billion in net assets, and $603 million went into SPDR Gold Shares, the largest gold ETF backed with the physical metal, over the same period, according to National Stock Exchange. A silver ETF, iShares Silver Trust, had a net inflow of $37 million.

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