UBS Global Asset Management has listed three new exchange-traded funds on the London Stock Exchange.
The additional UBS ETFs are physical replication ETFs based on the Solactive commodities indices and will give investors access to gold, copper and oil via those companies involved in the exploration and production of these commodities.
Andrew Walsh, UBS head of ETF UK, says: “These new ETFs give investors a Ucits-compliant option to gain access to individual commodities via physically replicating ETFs. The ETFs make up a widely diversified basket of global companies from the gold, copper and oil industries. The underlying constituents’ share price movements themselves have a strong correlation to movements in the respective commodities to which they are exposed. Changes in value of these underlying stocks within the indices have an immediate impact on the value of the ETFs.”
UBS-ETF Solactive Global Pure Gold Miners is based on the Solactive Global Pure Gold Miners Net Total Return Index which currently includes 25 international gold mining stocks. The companies each have a market capitalisation of USD1bn and all generate a minimum of 90 per cent of their sales from gold mining activities.
UBS-ETF Solactive Global Copper Mining is based on the Solactive Global Copper Mining Net Total Return Index which currently includes 27 international copper producers. The market capitalisation of each underlying constituent is above USD200m, are active in the exploration and production of copper and generally have a high correlation with the price of copper.
UBS-ETF Solactive Global Oil Equities is based on the Solactive Global Oil Equities Net Total Return Index. This currently includes 25 international oil companies whose market capitalisation is at least USD1bn. These companies generally have a high correlation with the movements in the price of oil.
The new UBS ETFs are available in two unit classes each: an attractively priced class “A”, and a class “I” which is offered to investors looking to trade in large volumes. The class “I” ETFs carry an even more competitive total expense ratio (TER) than the class “A”. The fund currency of all three newly listed UBS ETFs is USD. The ETFs in class “A” are traded on the London Stock Exchange in GBP; those in unit class “I” are traded in USD.
Commerzbank nsures competitive liquidity on the secondary market with narrow bid/ask spreads for all UBS ETFs listed on the London Stock Exchange. All new UBS ETFs are domiciled in Ireland.