UBS lists commodity ETF on LSE

UBS Asset Management has listed the UBS ETF (IE) Bloomberg Commodity CMCI SF UCITS ETF on the London Stock Exchange, offering investors exposure to a broad range of commodities, but in a way that includes use of the UBS Constant Maturity Commodity Index family of indices that seek to mitigate the effects of negative roll yield.

The Bloomberg Commodity index sets a benchmark for some $60bn of assets, and is used by institutional investors for diversified commodities investments. However, the improved yield of the UBS CMCI approach meant that it was right to include its use to add more value to investors, UBS said.

Andrew Walsh, head of Passive and ETF Specialist Sales UK & Ireland, said: “Accessing commodities in a Ucits structure requires the underlying index to use futures contracts as physical delivery is not permitted.  This means that the process by which futures contracts are rolled in the underlying index can have a very significant impact on overall performance of the ETF.”

The new ETF is offered on a TER of 0.37%


Jonathan Boyd
Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope. Jonathan has over two decades of media experience in Japan, Australia, Canada and the UK. Over the past 17 years he has been based in London writing about funds and investments. From editing the newsletter of the Swedish Chamber of Commerce in Japan in the 1990s he now focuses on Nordic markets for InvestmentEurope. Jonathan was awarded Editor of the Year at the Professional Publishers Association (PPA) Independent Publisher Awards 2017. Shortlisted for the same in 2016, he was also shortlisted in 2017 and 2015 for the broader PPA Awards category Editor of the Year (Business Media).

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