Bringing you live news and features since 2006 

ETF Securities launches sterling-hedged commodities solution for UK investors

RELATED TOPICS​

ETF Securities has launched a range of 14 new sterling-hedged Exchange Traded Commodities (ETCs) on the London Stock Exchange.

The products are designed to mitigate the effects of currency volatility in the portfolios of sterling-based investors by reducing exposure to the US dollar – the currency in which most commodities are priced.



The New ETCs track the performance of the Dow Jones-UBS Commodity Index Pound Sterling Hedged Daily Total Return and its sub-indexes, which are designed to reflect, as closely as possible, returns that would be generated if the underlying commodities were purchased in US dollars.

Foreign exchange exposure is hedged on a daily rather than monthly basis, in order to improve tracking performance.

Each of the 14 new products carries an MER (management expense ratio) of 0.49% and are supported by multiple swap counterparties and fully collateralised.

Neil Jamieson (pictured), Head of UK Sales, ETF Securities (UK) Limited, says: "These new sterling-hedged commodity products enhance our existing range of commodity investment solutions. There are many sterling-based investors who wish to hedge out currency risk. Our Exchange Traded Commodities that track Dow Jones-UBS Commodity Index Pound Sterling Hedged Daily will provide these investors with an innovative and effective solution. The products will also appeal to those investors who actively manage currency exposure with a view to enhancing overall investment returns."

Latest News

US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..

Related Articles

Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Lorraine Sereyjol-Garros, BNP Paribas
Following changes to the French Monetary and Financial Code and of the French market authority AMF’s General Regulation, it is...
Ed Rosenberg, Texas Capital
Texas Capital Bank first opened its doors back in December 1998 and nowadays offers wealth-management services, as well as commercial,...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by