The Armchair Trader’s partner, WisdomTree has today expanded its range of exchange-traded funds (ETFs) on SIX, the Swiss Stock Exchange, with the listing of the WisdomTree Broad Commodities UCITS ETF (PCOM) and WisdomTree Enhanced Commodity ex-Agriculture UCITS ETF (WXAG).
WisdomTree Broad Commodities UCITS ETF (PCOM)
PCOM seeks to track the performance of the Bloomberg Commodity Total Return Index before fees and expenses and has a total expense ratio (TER) of 0.19%. PCOM is also listed on the London Stock Exchange [LON:COMX], Börse Xetra and Borsa Italiana.
The Index tracked by WisdomTree Broad Commodities UCITS ETF covers four broad commodity sectors: energy, agriculture, industrial metals, and precious metals. PCOM is innovative in that the precious metals exposure is delivered through physical replication of gold and silver providing spot price performance for both precious metals. Total return swaps are used to deliver the performance for the energy, agriculture, and industrial metals components of the Index.
WisdomTree Enhanced Commodity ex-Agriculture UCITS ETF (WXAG)
WXAG seeks to track the performance, before fees and expenses of the Morgan Stanley RADAR ex Agriculture & Livestock Commodity Total Return Index and has a TER of 0.35%. WXAG is also listed on the London Stock Exchange and Börse Xetra.
The Index tracked by WisdomTree Enhanced Commodity ex-Agriculture UCITS ETF provides a broad and diversified commodity exposure, covering energy, industrial metals and precious metals, including platinum and palladium while omitting agricultural and livestock commodities. The index also seeks to systematically enhance the risk return profile of investing in commodity futures over the long term by using an enhanced rolling mechanism to take advantage of the shape of individual commodity futures curves.
Nitesh Shah, Director of Research, Europe, WisdomTree, said: “Commodity prices in 2023 have been challenged but the outlook is promising, given that the long-term growth potential and benefits of broad commodities in a portfolio remain in place. While short-term business cycles pressures maybe weighing on commodity prices now, we expect a secular rise in demand and tightness in supply to drive long-term price growth in the asset class. Broad commodity investments are a powerful source of diversification due to low correlations with most traditional asset classes. Given where markets are, it may be an opportune time to consider dialling up commodity allocations and increasing diversity within portfolios.”
Alexis Marinof, Head of Europe, WisdomTree, added: “There has been significant interest from Swiss investors for more commodity exposures to be listed on SIX. By leveraging our market leading position in commodity exchange-traded products (ETPs), we are able to extend our range of products listed in Switzerland and bring more convenient access to our product range. We are in constant dialogue with clients and evaluating opportunities to launch unique and differentiated ETPs, while continuing to cross-list ETPs in Europe that our investors want.”
