ETF Securities launches 12 new ETCs
ETF Securities has launched a range of euro-hedged and oil exchange traded commodities (ETCs) on Deutsche Börse’s electronic trading platform Xetra.
The firm said that the 10 euro-hedged products are designed to mitigate the effects of currency volatility in the portfolios of euro-based investors by reducing exposure to the US dollar – the currency in which most commodities are priced. The ETC provider also listed two new Brent Crude products on Xetra - ETFS Brent Crude and ETFS Forward Brent Crude - in recognition of Brent’s growing importance as the new global benchmark for oil.
The currency-hedged ETCs will track the performance of the Dow Jones-UBS Commodity index Euro Hedged Daily Total ReturnSM and its sub-indices through fully funded collateralised swaps and provide a solution to help mitigate unwanted currency exposure. Foreign exchange exposure will be hedged on a daily rather than monthly basis, in order to improve tracking performance.
The underlying indices are designed to reflect, as closely as possible, returns that would be generated if the underlying commodities were purchased in US dollars.
The new Brent Crude oil ETCs will track the performance of the Brent Crude sub-indices of the Dow Jones-UBS Commodity IndexSM through fully funded collateralised swaps and provide investors with the ability to invest in different positions along the oil futures curve.