Money News
ETF Securities is listing nine new Index Exchange Traded Commodities (ETCs) on the London Stock Exchange - offering investors, for the first time ever, the opportunity to gain direct and simple exposure to commodity futures prices which are linked to the Dow Jones-AIG Commodity 3 Month Forward Indices. Another nineteen Individual ETCs will be listed in the coming months.
The new ETCs will track 29 different individual commodities and baskets of commodities, making a total of two different maturities available.
The first ETCs to track DJ-AIG Commodity Indices were listed on the London Stock Exchange in September 2006. Since then, the existing 29 ETCs tracking DJ-AIG Commodity Indices have accumulated over $1.2 billion in assets. The most popular ETCs have been those tracking precious metals and agriculture, which contribute 70% of ETC assets.
The demand for new ETCs is a result of significant investor interest in commodities and increased knowledge about commodities investing. Graham Tuckwell, Chairman of ETF Securities, said, "ETCs have now been available in Europe since December 2003 and their simplicity and structure have now been embraced by the market. Many investors have approached us showing an appetite for ETCs priced off a range of commodities futures. Increased investor demand and knowledge has resulted in investors wanting access to more choice and alternative trading and investment strategies.
"With the new range of Forward ETCs, ETF Securities is continuing its leadership of the ETC market having previously delivered platforms of five physically backed precious metal ETCs, 8 oil ETCs backed by Shell and 29 commodity ETCs on 5 major stock exchanges."
10 October 2007 © Moneyextra.com
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