New York-based ETP sponsor WisdomTree has expanded its commodity ETP range with the launch of a market-neutral strategy.
The WisdomTree Enhanced Commodity Carry Exchange-Traded Commodity (CRRY), listed today on Börse Xetra and Borsa Italiana with a management fee (MER) of 0.40%. The ETC will list on the London Stock Exchange on 1 May 2025.
The fund seeks to track the price and yield performance, before fees and expenses, of the BNP Paribas Enhanced Commodity Carry ER Index, which is designed to capture the difference in carry costs between different points on the futures curve by providing 3x leveraged exposure to the difference between the long leg and the short leg.
The short leg replicates the BCOMex precious metals index, and the long leg is a basket of single commodities rolling futures indices whose weight mirrors the BCOM ex precious metals index, selecting contracts with up to 12 months to expiry.
In commodity futures markets, the cost of carry is the difference between the futures price and the spot price. It usually reflects the costs (storage, financing, etc.) and benefits, along with predicted market sentiment and risk premium, associated with holding the commodity until contract expiration.
Commodity carry strategies provide a systematic way to capture returns from the structure of commodity futures curves, rather than relying on price movements of the underlying commodities themselves.
Nitesh Shah, Head of Commodities and Macroeconomic Research, Europe, WisdomTree, said: “In an environment shaped by persistent inflation, policy uncertainty, and fragmented supply chains, carry strategies offer a differentiated and scalable return source.
“By focusing on the shape of futures curve, rather than spot price forecasts, they provide uncorrelated exposure that can improve diversification and complement both core fixed income and alternative allocations.”
WisdomTree has a range of 120 commodity ETPs and manages over $25bn across its commodity range.
