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ETCs on forward commodity indices tradable on Xetra for the first time

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Ten exchange-traded commodities from ETF Securities have been launched on the Frankfurt Stock Exchange, comprising nine ETCs that track the performance of various Dow Jones AIG 3-Month For

Ten exchange-traded commodities from ETF Securities have been launched on the Frankfurt Stock Exchange, comprising nine ETCs that track the performance of various Dow Jones AIG 3-Month Forward Commodity Indices plus ETFS Forward Natural Gas, 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 three 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 each of the new products is 0.49 per cent.

‘Within just a few months, ETCs have become a successful new product group on the Frankfurt Stock Exchange,’ says Rainer Riess, managing director and head of cash market development at Deutsche Börse.

‘We are pleased to have the opportunity to expand our investment range in the ETC segment further 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 last year. The new ETCs bring the number of products traded on the Xetra electronic system to 47, comprising 27 ETCs on individual commodities, 19 on commodity indices and one on a precious metals basket.

In legal terms, ETCs are collateralised debt instruments with an unlimited term and with no restrictions in terms of volume. They can be purchased and sold via Xetra on the same basis as equities, and offer precise, transparent commodities exposure via recognised benchmarks.

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