New WisdomTree ETC on Xetra: access to the energy commodity sector with roll optimisation
New WisdomTree ETC on Xetra: access to the energy commodity sector with roll optimisation
A new exchange-traded commodity issued by WisdomTree has been tradable on Xetra and Börse Frankfurt since Thursday.
With the WisdomTree Energy Enhanced - EUR Daily Hedged, investors can participate in the performance of US dollar-denominated futures contracts on commodities from the energy sector. Using an optimised roll methodology, roll losses arising from the exchange of maturing futures contracts are minimised during periods of contango markets and roll gains are maximised during backwardation markets. In addition, currency risks between the US dollar and the euro are hedged.
Roll losses in contango markets occur when the next futures contract on a commodity is more expensive than the expiring front month futures contract. The opposite case is called a backwardation market.
Name | Asset class | ISIN | Ongoing charges | Reference index |
WisdomTree Energy Enhanced - EUR Daily Hedged | ETC | XS2284324667 | 0.40 per cent | Optimised Roll Energy Index |
The product offering in Deutsche Börse's XTF segment currently comprises a total of 1,635 ETFs and 199 ETPs. With this selection and an average monthly trading volume of around €16.5 billion, Xetra is the leading trading venue for ETFs in Europe.