The Source Bloomberg Commodity UCITS ETF (BCOM) has become the fastest-growing European ETF of the last five years, with inflows of over USD925 million since its launch on 16 January.
The product offers the lowest charges of any broad commodities ETF with a total cost of 0.4 per cent per annum (an ongoing charge of 0.19 per cent and swap fee of 0.21 per cent).
BCOM is one of the most popular commodity benchmarks, launched in 1998 and covering 20 different commodities.
Chris Mellor, executive director, product management at Source, says: “Investors have been crying out for a more competitively priced, simple commodity ETF and the rapid growth in Source’s new BCOM ETF reflects this. Prior to this launch the lowest cost ETF tracking a first generation commodity index had an ongoing charge of 0.35 per cent and a total cost of 0.75 per cent pa, almost twice as much as our new fund.”
The global commodities sector rebounded strongly in 2016 and Source is expecting continued strong demand for the product. The BCOM index returned 12 per cent in 2016.
Source itself now has more than USD4.5 billion AUM in commodity products, including the new BCOM ETF and its existing LGIM Composite ETF, which has grown to over USD300 million in AUM.