Tag Archives: etf securities

ETF News

10 New Commodities ETPs listed Down Under

Leave a comment

By Ben Collins

ETF Securities has released 10 new exchange traded products that aim to provide direct exposure so the commodities boom.

The ten new exchange traded commodities products have been listed on the Australian Securities Exchange (ASX), bringing the total number listed to 15.

“Historically, gaining exposure to this asset class was typically achieved by investing in the shares of mining and resource companies or, for investors with adequate expertise, commodity futures markets,” said Fred Jheon, managing director, Asia Pacific, ETF Securities.

“ETCs provide a convenient, transparent and liquid solution to investors seeking more direct exposure.”

The products are structured as deferred purchase agreements based on the commodity ETCs that have been issued by ETF Securities since 2006. Five of the new ETCs provide exposure to individual commodities such as Brent crude oil.

For investors seeking broader exposure to this asset class, ETF Securities said four ETCs aim to replicate the performance of commodity baskets, in sectors such as energy and agriculture.

The ETFS All Commodities (CSP) provides exposure to 20 different commodities across a range of sectors, which ETF Securities said affords even greater opportunity for diversification.

The ten new ETCs are designed to reflect the performance of the Dow Jones-UBS Commodity Index and its sub-indexes. ETF Securities is an exchange-traded products provider specialising in commodities with US$26.9bn in AUM at 31 March 2012.

ETF News, People Profiles

Four New Brent Crude ETPs

Leave a comment

ETF Securities (ETFS) has expanded its Brent Crude exchange traded products offering against a background of rising geopolitical tensions in the Middle East.

The issuer unveiled four ETPs on the London Stock Exchange, as Brent Crude’s importance as the new global benchmark for oil rises. West Texas Intermediate has been beset with local logistical issues that have seen it move to a significant discount to Brent.

The range of ETPs provide investors with long, leveraged, short and forward exposures to the Brent oil price and complement its existing offering of 1-month, 1-year, 2-year and 3-year exposures.

In a recent poll by ETFS, three quarters of respondents said they expected tensions in the Middle East to escalate while two thirds said this would occur within the first half of this year. The vast majority of these respondents also said this would impact their asset allocation decisions.

The ETFS Brent Crude oil ETPs are issued by ETFS Commodity Securities Limited, a Jersey-based special purpose vehicle.

The vehicles track the performance of the Brent Crude sub-indices of the Dow Jones-UBS Commodity Index, via fully funded collateralised swaps.

Exposure to Brent Crude is obtained via multiple swap counterparties, including UBS and Bank of America Merrill Lynch acting through Merrill Lynch Commodities.