WisdomTree has launched the WisdomTree Energy Enhanced – EUR Daily Hedged ETC on Xetra and Börse Frankfurt.
With the new ETC investors can participate in the performance of US dollar-denominated futures contracts on commodities from the energy sector. Using an optimised roll methodology, roll losses arising from the exchange of maturing futures contracts are minimised during periods of contango markets and roll gains are maximised during backwardation markets. In addition, currency risks between the US dollar and the euro are hedged.
Roll losses in contango markets occur when the next futures contract on a commodity is more expensive than the expiring front month futures contract. The opposite case is called a backwardation market.
