ETF World.........Inside Exchange Traded Funds

Tuesday, September 26, 2006

TF Securities, a developer of exchange-traded products, will launch 29 new funds on Wednesday that it hopes will attract investors looking to access commodity markets, the company said on Tuesday.

ETF Securities will launch 19 individual securities and 10 index securities that will allow investors to trade in individual commodities or a focused index.

The products will be traded on the London Stock Exchange.

At the same time, the LSE said it will launch a new market segment for ETCs.

The market segment, the first of its kind in the world, will contain 32 exchange traded commodities and commodity indices, including the 29 to be issued by ETF Securities.

"Nobody has ever launched 29 products in one go. We are giving investors full access to an asset class to which they have been unable to gain exposure to date," Hector McNeil, head of sales and marketing at ETF Securities, said.

"We have had huge interest from institutional investors, hedge funds and a lot of private wealth," he added.

Exchange-traded funds allow investors to gain exposure to commodity markets, which have stormed to record highs in many cases over the past three years, without having to worry about setting up futures trading accounts or taking physical delivery of products.

ETF Securities' 19 exchange-traded commodities (ETCs) range from copper and aluminium to crude oil and gasoline and also include agricultural commodities, including live cattle, sugar and wheat.

The index products include a cross-commodity product, base and precious metals baskets and energy.

McNeil said the products tracked the Dow Jones AIG indices, which in turn were based on London Metal Exchange prices for base metals other than copper and U.S. futures markets for everything else.

ETF Securities launched a physically-backed gold fund about 2-1/2 years ago that has attracted $1.6 billion (840 million pounds) in investment.

An oil index launched a year ago has about $150 million invested in it and more products may be in the pipeline.

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