UBS Asset Management (UBS AM) has launched two new currency hedged exchange traded fund commodity share classes on the LSE.
The UBS ETFs (IE) Bloomberg Commodity CMCI hedged GBP ETF replicates the performance of the UBS Bloomberg Commodity CMCI (Constant Maturity Commodity Index) GBP hedged Total Return Index. The index is designed to provide enhanced beta exposure to a broad basket of commodities, by applying the CMCI’s daily rolling mechanism and tenor-diversification principle to its underlying components. The UBS Bloomberg Commodity CMCI hedged to GBP applies the advanced CMCI futures rolling methodology, while using the standard commodity weights of the Bloomberg Commodity (‘BCOM’) Index. This can provide major benefits to investors who are tied to the BCOM benchmark, but want to take advantage of the CMCI’s rolling methodology.
The UBS Bloomberg CMCI Ex-Agriculture ETF replicates the performance of the UBS Bloomberg CMCI Ex-Agriculture Ex-Livestock Capped Index GBP Hedged Total Return Index. It enables the construction of commodity exposures across maturities and three commodity categories: Energy, industrial metals and precious metals, with up to 14 components.
Both ETFs replicate the performance of their respective indices via swap-based replication, have collateral levels in excess of 105 per cent and are hedged to GBP.