Auspice Capital Advisors has launched the Canadian Crude Oil Index ETF, which has begun trading on the Toronto Stock Exchange under the ticker symbol "CCX".
Auspice's Canadian Crude Oil Index ETF seeks to replicate, to the extent possible, the performance of the Canadian Crude Excess Return Index, which is designed to measure the performance of the Canadian crude oil market in an investable format.
"Canadian crude oil does not get its due on the world stage — it is a poorly visible commodity," says Tim Pickering, President and CIO, Auspice Capital Advisors. "Our Canadian Crude Oil Index ETF is the first of its kind in Canada and the first ETF launched under the Auspice brand name. We are excited to offer an ETF that lets investors participate in the Canadian crude oil market in a pure way, rather than by buying the stocks of oil producers. We believe that we are meeting significant demand for an easy to understand product linked to this highly sought after market."
The Canadian Crude Index (CCI) is a benchmark for oil that is produced in Canada. The CCI reference price is displayed in US dollars and represents a rolling three-month exposure, which is intended to improve liquidity, lower transaction costs and reduce the effect of contango and backwardation.
"The Canadian Crude Index gives investors a tool to better understand the price of Canadian crude that simply did not exist before," says Pickering. "West Texas Intermediate is not an accurate measure of the price of Canadian oil, yet is the one that is most commonly referenced in Canada. This index is a transparent, liquid benchmark that may increase the number of investors participating in Canadian crude. By increasing transparency and participation in the commodity outside of the wholesale community, we hope that we are making a contribution to getting crude oil produced in Canada fair global awareness, transparency, and pricing. This benefits producers and Canada as a whole."