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LGIM unveils future commodities ETF

commodities_etfLegal & General Investment Management (LGIM) has launched a multi-strategy ETF for investors seeking exposure to the commodities futures market.

The Ucits-compliant fund is said to be designed for investors seeking to manage inflation and gain exposure to opportunities across different commodities throughout the market cycle as part of a multi-asset portfolio.

According to the firm, the L&G Multi-Strategy Enhanced Commodities UCITS ETF employs a multi-factor strategy as a means of risk mitigation and optimising exposure across specific commodities. 

Howie Li, head of ETFs at LGIM, said: “This investment strategy considers the risks and opportunities associated with the seasonality of certain commodities investments, roll yield enhancements in managing futures and the momentum effect of certain agricultural investments.”  

Initially being listed on the London Stock Exchange, the ETF seeks to track the performance of the Barclays Backwardation Tilt Multi-Strategy Capped Total Return Index.

The portfolio will consist of futures across five commodity groups. These are: energy, precious metals, industrial metals, livestock and agriculture.

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