A commodity ETF launched by Source has become the fastest growing product of its kind in Europe over the past five years, the firm said.
The Source Bloomberg Commodity Ucits ETF launched on January 16 has had inflows of $925 million ($857 million).
The firm based the claim on Bloomberg data and says the ETF is also the fastest growing product for the firm ever.
Source described commodities as having “rebounded strongly” in 2016 and said the fund’s benchmark – the Bloomberg Commodity Index – returned 12%.
But the firm puts the ETF’s success down to charges, saying it has the lowest costs of any broad commodities ETF, with a total cost of 0.40% per annum. According to Source this is half the price of a similar product.
Chris Mellor, Source’s executive director, product management, said the ETF’s growth reflected that investors have been “crying out” for a more “competitively priced, simple commodity ETF”.
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