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%