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Lyxor Asset Management (Lyxor), Société Générale’s wholly-owned subsidiary and European leader in Exchange Traded Funds (ETFs), today announces the launch of two new commodities ETFs - the Lyxor ETF Commodities CRB (GBP) (Bloomberg code: LCTY LN) and the Lyxor ETF Commodities CRB Non-Energy (GBP) (Bloomberg Code: LCNE LN). These latest Lyxor ETFs are the first to be linked to the Reuters/Jefferies CRB Index, the oldest and most widely followed index of commodities futures in the world, and will also be the first commodities ETFs to list on the London Stock Exchange (LSE).
The launch follows Lyxor AM’s entry into the UK ETF market with the introduction of three ETFs based on FTSE indices last month, giving investors complete access to the entire UK market. The Lyxor ETF Commodities CRB will give investors easy access to the commodities sector through one single share traded on the LSE. The ETFs will simultaneously be made available in USD (listed on the LSE) and all will feature a low total expense ratio of 0.35% p.a.
Commodities are a useful portfolio diversification tool, as correlation levels with asset classes such as bonds, equities and property have historically been low. The new Lyxor Commodities ETFs enable access to the full commodity spectrum - including or excluding the energy sector - so that investors can track the oldest and most reliable commodit
ies index using a low cost and efficient investment instrument.Lyxor plans further product launches later this year.
Justin Urquhart Stewart, Director of Seven Investment Management, commented, “This is a very exciting development in the UK ETF market. This is the first commodities ETF to be listed on the London Stock Exchange, and I believe this and other commodities ETFs that may come to market later this year and next will act as a catalyst for a huge increase in the amount UK investors invest in this asset class.”
