Financial services provider WisdomTree has listed two new ETFs on SIX, the Swiss Stock Exchange, expanding its offerings for investors.
The newly listed ETFs are the WisdomTree Broad Commodities Ucits ETF (PCOM) and the WisdomTree Enhanced Commodity ex-Agriculture Ucits ETF (WXAG).
PCOM aims to replicate the performance of the Bloomberg Commodity Total Return Index, covering energy, agriculture, industrial metals and precious metals.
Notably, PCOM offers exposure to precious metals through the physical replication of gold and silver, delivering spot price performance. Total return swaps are used for the remaining components.
WXAG seeks to track the performance of the Morgan Stanley RADAR ex Agriculture & Livestock Commodity Total Return Index, providing exposure to energy, industrial metals and precious metals while excluding agricultural and livestock commodities.
According to WisdomTree, WXAG employs an enhanced rolling mechanism to capitalise on the shape of individual commodity futures curves.
The financial services provider also said that listing PCOM and WXAG on SIX offers investors expanded options for accessing the commodity market and potential diversification benefits within their portfolios.
Nitesh Shah, director of research, Europe, WisdomTree, highlighted the long-term growth potential and diversification benefits of broad commodities, stating, “Commodity prices in 2023 have been challenged, but the outlook is promising… Broad commodity investments are a powerful source of diversification due to low correlations with most traditional asset classes.”
Alexis Marinof, head of Europe at WisdomTree, highlighted the demand for more commodity exposures on SIX, stating, “There has been significant interest from Swiss investors for more commodity exposures to be listed on SIX.”
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