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Ten new Exchange Traded Commodities (ETCs) from issuer ETF Securities have been tradable on the Frankfurt Stock Exchange since Tuesday. Nine of the ten ETCs enable investors to participate for the first time in the performance of various Dow Jones AIG 3-Month Forward Commodity Indices. Moreover, with ETFS Forward Natural Gas, ETF Securities also offers a forward ETC on natural gas as an individual commodity.
In terms of pricing, forward ETCs focus on future contracts, which will represent the crucial contract in 3 months’ time. This gives investors the opportunity to make targeted investments in additional maturities of the future curve for a variety of commodity indices. The annual management fee for the new products is 0.49% per product.
“Within just a few months, ETCs have become a successful new product group on the Frankfurt Stock Exchange,” said Rainer Riess, Managing Director and Head of Cash Market Development at Deutsche Börse. “We are pleased to have the opportunity to further expand our investment range in the ETC segment with the new innovative products from ETF Securities and to enable investors to implement new strategies in commodities.”
ETCs have been tradable on the Frankfurt Stock Exchange since November 2006. With the new ETCs, the offering has now increased to 47 products, including 27 ETCs on individual commodities, 19 ETCs on commodity indices and one ETC on a precious metals basket. In legal terms, ETCs are collateralized debt instruments with an unlimited term and featuring no restrictions in terms of volume. They can be purchased and sold on an ongoing basis via Xetra just like equities, and offer a precise, transparent commodities exposure via recognized benchmarks.
