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DWS Xtrackers : New Commodity ETF on LSE

DWS Xtrackers : A new Commodity ETF on London Stock Exhange

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By ETFWorld.co.uk


Xtrackers Bloomberg Commodity Swap UCITS ETF is passively managed. The aim is for your investment to reflect the performance of Bloomberg Commodity Index Total Return 3 Month Forward.

The index is designed to be a highly liquid and diversified benchmark for longer dated commodity investments and represents the returns of a diversified basket of commodity futures.

Twenty-five commodities are eligible for inclusion in the index: aluminum, cocoa, coffee, copper, corn, cotton, crude oil, gold, lead, lean hogs, live cattle, low sulphur gas oil, natural gas, nickel, platinum, reformulated blendstock for oxygenate blending (RBOB) gasoline, silver, soybean meal, soybean oil, soybeans, sugar, tin, ultra-low-sulphar (ULS) diesel, wheat, and Zinc.

Each designated commodity future contract, which is eligible for the index, is weighted based on the following relative figures:

(i) commodity production percentage (based on the average U.S.-dollar-adjusted value of production, which measures the economic significance of the commodity), and

(ii) commodity liquidity percentage (based on the average volume of trading). Among the designated commodity future contracts selected for inclusion, weighting limits both at single commodity and commodity group level are applied annually.

Single commodities must have a minimum weight of 2% in the index and are capped at 15%. Single commodities together with their derivatives (e.g., West Texas Intermediate (WTI) crude oil and Brent crude oil, together with ULS diesel and unleaded gas), are capped at 25% of the index.

Related groups of commodities (e.g., energy, precious metals, livestock or grains) are capped at 33% of the index.

The composition of the index is reweighted and rebalanced annually.

Between rebalancings, weightings may fluctuate to levels outside the above limits. To achieve the aim, the fund will invest in transferable securities and enter into financial contracts (derivatives) with one or more swap counterparties relating to transferable securities and the index, in order to obtain the return on the index.

The currency of the fund is USD.

Returns and gains are not distributed but are reinvested in the fund.

Name Xtrackers Bloomberg Commodity Swap UCITS ETF
ISIN LU2278080713
Sedol BMQ7FM5
On-going charges 0.19 per cent
Currency USD
Reference index Bloomberg Commodity Index 3 Month Forward

Source: ETFWorld.co.uk

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