Lyxor cross-lists commodity and inflation expectations ETFs on SIX

Jun 6th, 2017 | By | Category: Commodities

Lyxor has cross-listed a commodity ex-agriculture ETF as well as two inflation expectations ETFs on the SIX Swiss Exchange.

Lyxor cross-lists commodity and inflation expectation ETFs on SIX

The ETFs were launched last year on a number of other European exchanges and have recently been added to the SIX roster.

The Lyxor Commodities Thompson Reuters/CoreCommodity CRB EX-Agriculture TR UCITS ETF (SIX: CRAU) tracks the Thompson Reuters/CoreCommodity CRB Non-Agriculture and Livestock Total Return Index. The index includes nine metals and energy-related commodities and excludes agriculture and livestock commodities.

A committee decides which commodities are included in the index using factors including liquidity, global economic significance, commodity sector correlations and strategic properties commonly associated with commodities as an asset class (e.g. inflation protection). Current constituents are aluminium, copper, gold, nickel, silver, crude oil, heating oil, unleaded gas and natural gas.

To determine the index weights, constituents are organised into three groups based on liquidity. The first group includes petroleum products and is capped at 33%; group two includes highly liquid commodities which are equal weighted and capped at 60% in total, and group three contains the least liquid and is capped at 7%.

As of 31 March 2017, significant index weights are WTI Crude (23%), gold (15%), silver (15%), aluminium (15%), and copper (15%), with the remaining constituents each making up 5% or less.

The ETF is rebalanced each month and has a total expense ratio (TER) of 0.35%. The ETF is also listed on London Stock Exchange (GBP and USD), Xetra (EUR) and Borsa Italiana (EUR).

The Lyxor US$ 10Y Inflation Expectations UCITS ETF (INFU) and the Lyxor EUR 2-10Y Inflation Expectations UCITS ETF (INFL) offer investors exposure to inflation expectations by holding long positions in inflation-linked government debt and short positions in standard government bonds with matching durations (See: Lyxor launches first UCITS ETFs to track inflation expectations).

INFU has an average maturity of 8.9 years with all index components having a maturity of between 7 and 10 years. INFL provides exposure to shorter term inflation expectations with an average maturity of 5.2 years. The fund is weighted 57% to France (AA rated) and 43% to Germany (AAA rated).

INFU will trade in USD on SIX and is already listed on London Stock Exchange (GBP and USD), Euronext Paris (EUR), Xetra  (EUR) and Borsa Italiana (EUR). INFL will trade in EUR on SIX and is already listed on London Stock Exchange (GBP), Euronext Pairs (EUR) and Xetra (EUR).

INFU currently has $531 million in assets under management (AUM) with a TER of 0.25%. INFL currently has €454m in AUM with a TER of 0.25%.

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