Deutsche Bank’s exchange-traded commodity platform has listed ten new ETCs on the London Stock Exchange.
The new range enables investors to gain exposure to a wide spectrum of commodities.
This includes the db Physical Gold ETC and the db Physical Silver ETC that are backed by the relevant precious metal being tracked by the ETC.
Also being launched are a range of index linked ETCs such as the db S&P GSCI Industrial Metals ETC and db Energy Booster ETC. The exposures to the swap transactions incorporated in these ETCs are fully collateralised with physical gold.
Some of the index linked ETCs are linked to Deutsche Bank’s Optimum Yield commodity indices. The indices underlying ETCs are typically linked to the performance of a basket of commodity futures contracts. Due to the costs (or gains) associated with “rolling” commodity futures contracts (i.e. selling a maturing contract and buying a new one) there may be a divergence between the spot and future price of a commodity. The Optimum Yield technique represents a way of investing into commodities with the aim of minimising such costs (or maximising gains) from the rolling of commodity futures contracts. The index linked ETCs which use the Optimum Yield technique have the word “Booster” in their name.
Deutsche Bank acts as market maker for all of the products. They add to the range of 19 which were listed on Xetra Frankfurt earlier this year.
David Silbert, global head of commodities at Deutsche Bank, says: “The ETC platform offers investors a simple, efficient and liquid way to gain exposure to a wide range of commodities at a competitive price. We anticipate strong demand for these products.”
