New ETFs launching on Xetra trading venue are based on the US equity indices Russell 1000 and Russell 2000. With these additions current ETC offering will enable investors to compliment their direct commodity investments with indirect exposure to the commodity market.
Exchange-traded funds issued by ETF Securities will allow clients easy access to equities in the following commodity sectors: alternative energy sources, water, nuclear energy and agriculture.
The DAXglobal Alternative Energy Index tracks the performance of the 15 liquid alternative energy companies around the world. The index allocates the five segments wind, solar, ethanol, natural gas and geothermal power/hydropower/batteries an equal weighting and contains three companies from each segment.
The WNA Nuclear Energy Index, the official index of the World Nuclear Association, is a benchmark for companies from all walks of the international nuclear industry. These include: power station construction, reactors, nuclear energy generation, fuels as well as technology, equipment and services.
The Janney Global Water Index is the benchmark for water supply companies or technology providers for those companies. Both segments have an equal weighting in the index.
The S-Network ITG Agriculture Index contains companies from the international agricultural industry. The methodology of the index ensures it contains positions from various segments of the international agricultural industry. These include: seeds, chemicals and fertilizers, equipment, agricultural goods and livestock.
No management fees will be charged for these ETFs until 31 January 2009. Then fees will range between 0.35 and 0.65 %.
We welcome ETF Securities as the twelfth ETF provider on Xetra Europes leading ETF trading platform in terms of turnover, says Rainer Riess, managing director, Cash Market Development department, Deutsche Boerse. We embrace the issuers decision to expand its Xetra-traded product range, comprising more than one hundred exchange-traded commodities, to include exchange-traded funds.
L.D.