UBS Global Asset Management has launched two new carry trade commodity futures ETFs on Xetra and Börse Frankfurt.
With UBS (Irl) Fund Solutions plc – CMCI Commodity Carry Ex-Agriculture SF UCITS ETF (USD) A-acc, investors gain access to a commodity strategy that simultaneously takes a short and long position in the futures of various commodity indices. Both the long and short position contain futures contracts on the same commodities, but with different maturities. The aim is to maximise the roll yield. Carry trades are trading strategies that exploit interest rate or, as in this case, time value differences.
Only the energy commodities oil and gas as well as the industrial metals aluminium, zinc, nickel and copper are considered. Futures on precious metals, agricultural commodities and livestock are excluded.