Deutsche Börse has further expanded its offering of exchange-traded commodities (ETCs) on the pan-European Xetra trading platform. The first physically backed ETCs on silver, platinum and palladium have been listed on the Frankfurt Stock Exchange since Wednesday. Furthermore, the ETC product offering has been expanded to include physically backed ETCs on gold and a basket of precious metals. The issuer of the new ETCs is ETF Securities.
The new exchange traded commodities are the ETFS Physical Gold (DE000A0N62G0), ETFS Physical Silver (DE000A0N62F2), ETFS Physical Platinum (DE000A0N62D7), ETFS Physical Palladium (DE000A0N62E5) and ETFS Physical PM Basket (DE000A0N62H8). The latter contains the four commodities on a pro rata basis: 20 percent platinum, 12 percent palladium, 26 percent silver and 42 percent gold. All ETCs are physically backed, i.e. the respective precious metal is actually deposited. This gives investors a straightforward and innovative opportunity for investment in the respective precious metals.
“We are pleased to broaden our ETC offering with the first Euro listing of five new, physically backed ETCs issued by ETF Securities. ETCs provide both investors and traders with a new and easily accessible way of trading precious metals on our electronic trading platform Xetra. The new products mark an excellent addition to our extensive and well-established ETF offering”, said Rainer Riess, Managing Director Stock Market Business Development.
“We notice an increasing global demand for precious metals through ETCs which have seen steady growth over the last four years to over US$16 billion. With the listing of our new ETCs on Deutsche Börse, we want to offer German and European investors exposure to a broad range of precious metals which have historically been extremely difficult to access”, said Graham Tuckwell, Chairman of ETF Securities.
Deutsche Börse had already expanded its comprehensive ETF offering to include 31 ETCs back in November 2006. In legal terms, ETCs are secured, open ended zero-coupon notes which have no specified maturity date, and which can be bought and sold continuously on Xetra in the same way as any equity, providing accurate and transparent exposure to commodities through recognized benchmarks.
