The Source Bloomberg Commodity UCITS ETF (“BCOM”), launched on Monday 16 January, has become the fastest-growing ETF in Source’s history with inflows of over $925m to date.
In an indication of the highly competitive nature of the product – and market demand for ETFs – the product has also become the fastest growing European ETF in the last five years, based on analysis of Bloomberg data.
The product offers the lowest charges of any broad commodities ETF: a total cost of only 0.40% per annum (an ongoing charge of 0.19% and swap fee of 0.21%). BCOM is one of the most popular commodity benchmarks, launched in 1998 and covering 20 different commodities.
Source’s Chris Mellor, Executive Director, Product Management, observed “Investors have been crying out for a more competitively priced, simple commodity ETF and the rapid growth in Source’s new BCOM ETF reflects this. Prior to this launch the lowest cost ETF tracking a first generation commodity index had an ongoing charge of 0.35% and a total cost of 0.75%p.a., almost twice as much as our new fund.”
The global commodities sector rebounded strongly in 2016 and Source is expecting continued strong demand for this cost-effective, straightforward investment product tracking a well-known index (the BCOM index returned 12% in 2016).
Source itself now has more than $4.5 billion AUM in commodity products, including the new BCOM ETF and its existing LGIM Composite ETF, which has steadily grown to over $300 million in AUM.
