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ETC tracks performance of Brent crude and offers a currency hedge
Deutsche Börse just announced that a new exchange traded commodity (ETC) issued by BNP Paribas Arbitrage Issuance B.V. has been tradable on Xetra and Börse Frankfurt since Tuesday.
ETC name: EUR Hedged RICI Enhanced Brent Crude Oil Total Return Index ETC ISIN: DE000PB6REB0
Management fee: 1.2 percent
Distribution policy: accumulating
Reference index: Rogers International Commodity Enhanced Brent Crude Oil Total Return Index
The EUR Hedged RICI Enhanced Brent Crude Oil Total Return Index ETC enables investors to participate in the performance of Brent crude oil.
The reference index comprises Brent crude oil futures contracts with differing maturities – and is denominated in US dollars. The limited term of the futures contracts requires a switch prior to expiry in exchange for a futures contract with the next expiry date (rollover).
Possible losses as a result of the rollover are minimised using an optimised selection procedure. Only contracts that expire in June or December are bought for the index. A rollover takes place twice a year and takes five trading days. This currency-hedged unit class will hedge against exchange rate fluctuations between the US dollar and the euro.
Deutsche Börse’s product range in its ETF and ETP segment currently comprises 1,148 ETFs, 202 ETCs and 132 ETNs.