Deutsche Börse today announced that it will start trading exchange traded commodities (ETCs) on its electronic trading platform Xetra. On November 3, ETF Securities Ltd. will list 31 ETC products, comprising 21 individual securities and 10 index securities, which will offer investors direct access to key commodity groups. Two of the new ETC products are oil trackers backed by the Shell Group of companies and the remaining 29 products track commodity indices published by Dow Jones Indexes, the latter range of products representing the first euro quoted listing of these ETCs in Europe.
The new ETC offering will complement Deutsche Börse’s existing segment for exchange traded funds, XTF, in which 151 index funds are currently listed. Exchange traded commodities have many of the advantages of ETFs. They 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.
Commenting on the new products, Rainer Riess, Managing Director, Stock Market Business Development, said "We are very pleased to provide both investors and traders with a new and easily accessible way of trading commodities on our electronic trading platform Xetra. With the launch of ETCs on Deutsche Börse, investors will be able to gain exposure to a broad range of euro quoted commodities on a single electronic platform for the first time. ETCs mark an excellent addition to our ETF offering and enable investors to benefit from even more extensive diversification opportunities."
Nik Bienkowski, Head of Listings at ETF Securities Limited, commented: “We are delighted to pioneer the opening of such a big range of direct commodities investment to investors and trading firms connected to Deutsche Börse’s pan-European trading platform Xetra. ETFs have proved hugely popular on Deutsche Börse and the offering of our full product range on Xetra seemed a natural step for us.
"We designed our ETCs to be simple, secure, open-ended securities that would lower the many barriers that previously prevented investors from investing in commodities such as access, trading and operational risks, custody, and transaction costs."
The 21 separate classes of commodity securities available are:
ETFS Aluminium (ISIN: DE000A0KRJS4);
ETFS Brent Oil (DE000A0KRKM5);
ETFS Coffee (DE000A0KRJT2);
ETFS Copper (DE000A0KRJU0);
ETFS Corn (DE000A0KRJV8);
ETFS Cotton (DE000A0KRJW6);
ETFS Crude Oil (DE000A0KRJX4);
ETFS Gasoline (DE000A0KRJY2);
ETFS Gold (DE000A0KRJZ9);
ETFS Heating Oil (DE000A0KRJ02);
ETFS Lean Hogs (DE000A0KRJ10);
ETFS Live Cattle (DE000A0KRJ28);
ETFS Natural Gas (DE000A0KRJ36);
ETFS Nickel (DE000A0KRJ44);
ETFS Silver (DE000A0KRJ51);
ETFS Soybeans Oil (DE000A0KRJ69);
ETFS Sugar (DE000A0KRJ85);
ETFS Wheat (DE000A0KRJ93);
ETFS WTI Oil (DE000A0KRKN3);
ETFS Zinc (DE000A0KRKA0)
The 10 baskets of commodities are:
ETFS All Commodities (DE000A0KRKC6);
ETFS Agriculture (DE000A0KRKB8);
ETFS Energy (DE000A0KRKD4);
ETFS Ex-Energy (DE000A0KRKE2);
ETFS Grains (DE000A0KRKF9);
ETFS Industrial Metals (DE000A0KRKG7);
ETFS Livestock (DE000A0KRKH5);
ETFS Petroleum (DE000A0KRKJ1);
ETFS Precious Metals (DE000A0KRKK9);
ETFS Softs (DE000A0KRKL7)
