Wisdom Tree launches commodity ETF on Xetra
ETF provider Wisdom Tree has launched a new Enhanced Commodity Ucits ETF on Xetra, the online trading segment of Deutsche Börse.
The fund reflects the Optimised Roll Commodity Total Return Index, which aims to offer broader diversification using the same initial weighting as the Bloomberg Commodity Index while complementing it with a rolling mechanism based on the S&P GSCI Dynamic Roll methodology.
The index currently includes 22 commodities with a sector weighting of 35.3% agriculture, 33.1% energy, 17% industrial metals and 15.5% precious metals.
Victor Nossek, director of Research at WisdomTree Europe comments on the launch: “The integrated rolling mechanism used for the Wisdom Tree Enhanced Commodity Ucits ETF leads to significantly lower holding costs of commodity futures contracts and in the past has led to positive roll yields, allowing investors to remain invested in commodities for the long term.”