New ETFs Created for Commodities Markets

ETF TIMES: ETFS Launches 14 New Sterling-Hedged Commodity ETFs in London

Lee Davidson 9 March, 2012 | 11:01AM
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This week, ETF Securities launched fourteen new exchange-traded commodities (ETCs, which are also more commonly known as ETFs) on the London Stock Exchange. The newly launched investment vehicles offer sterling-hedged exposure to a various commodity benchmarks as measured by Dow Jones-UBS indices.

ETF Securities announced that all fourteen ETCs would be sterling-hedged on a daily basis in order to reflect as closely as possible the performance of the underlying commodities in terms of US dollars. By hedging daily as opposed to monthly, ETF Securities says slippage could be reduced significantly.

These products are specifically suitable for investors looking to reduce their portfolio's exposure to exchange-rate risk in the form of sterling volatility. Historically, exchange-rates have been a significant contributor to the performance of international asset returns.

Below are the details on the new sterling-hedged ETCs on offer from ETF Securities in London:

 

 

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Lee Davidson

Lee Davidson  is Head of Manager and Quantitative Research.

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