Commodity

WisdomTree launches broad commodities ETF

Mix of physical and synthetic replication

WisdomTree has expanded its ETF range with the launch of a product that offers exposure to a basket of commodities including energy, agriculture, industrial metals and precious metals.

The WisdomTree Broad Commodities UCITS (PCOM) is listed on the London Stock Exchange and Deutsche Boerse with a management expense ratio of 0.19%.

PCOM tracks the Bloomberg Commodity Total Return index which incorporates a broad range of commodities.

Interestingly, the ETF is a mixture of physical and synthetic exposure. Precious metals such as gold and silver will be physically replicated while swaps are used to deliver the performance of energy, agriculture and industrial metals.

Nitesh Shah, head of commodities and macroeconomic research, Europe, at WisdomTree said: “Inflation in the US and Europe is running at the highest levels in over a decade, mainly driven by supply-side shocks, which commodities are uniquely positioned to protect against.

“Energy price spikes, drought-induced food price increases and transit bottlenecks, for example, feed directly into commodity prices and the consumption baskets that inflation figures are calculated from.”

Alexis Marinof (pictured), head of Europe, WisdomTree added: “PCOM takes an innovative approach to delivering access to broad commodities by providing exposure to the spot price of precious metals.

“Commodities are at the heart of our European business, and we remain committed to providing investors with access to unique strategies that add value to their portfolios.”

The firm has the largest commodities ETF offering in Europe following the acquisition of ETF Securities in 2018.

In July, it launched a commodities ETF that excludes agriculture, the WisdomTree Enhanced Commodity ex-Agriculture UCITS ETF (EXAG).


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