WisdomTree launches ETCs on LSE

London_Stock_ExchangeETP specialist WisdomTree has listed two exchanged-traded commodities (ETCs) on the London Stock Exchange.

The Boost Enhanced Industrial Metals ETC and the Boost Enhanced Energy ETC aim to minimise the potential losses arising from commodity future contracts in contango (in which the spot or cash price of a commodity is lower than the forward price) or to maximise the benefit from contracts in backwardation (where the spot or cash price is higher than the forward price).

Christopher Gannatti, head of research for Europe, said: “As a result of the Organization for Petroleum Exporting Countries (OPEC) policy, oil supply is currently declining, helping to lift prices.

“Most industrial metals are in a supply deficit and we believe that once the fog of trade concerns lifts, metals will be able to trade on their own fundamentals and shake off the negative sentiment that has recently held down the asset class.”

Both products have total expense ratios of 0.40%.

WisdomTree currently has around $57.3 billion (€50.2 billion) in assets under management globally.

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