WisdomTree introduces GBP share classes for three crude oil ETCs

May 26th, 2020 | By | Category: Commodities

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WisdomTree has introduced sterling-denominated share classes for three crude oil ETCs listed on the London Stock Exchange.

WisdomTree rolls out GBP share classes for three oil ETCs

The new share classes provide sterling-based investors with exposure to crude oil futures.

Previously only tradable on the LSE in USD, the new GBP trading lines provide sterling-based investors with exposure to futures contracts on Brent and West Texas Intermediate (WTI) crude oil benchmarks.

Each product is UCITS-compliant and gains its exposure through a fully collateralized swap.

The WisdomTree Brent Crude Oil (BRNG LN) tracks the Bloomberg Brent Crude Subindex which consists of front-month futures contracts for Brent crude oil.

The ETC charges annual management fees of 0.49% and a daily swap rate of 0.00123%. It houses $370 million AUM and is also available in US dollars on LSE (BRNT LN) and in euros on Xetra (OOEA GY) and Borsa Italiana (BRNT IM).

The WisdomTree Brent Crude Oil Pre-roll (BRNB LN) tracks the Nasdaq Commodity Brent Crude Oil ER Index which, similarly, is composed of front-month futures contracts for Brent crude oil. The difference is that this index rolls its futures contracts into the following month earlier, between the first and fifth business days of each month, while the aforementioned Bloomberg Brent Crude Subindex rolls its contracts between the sixth and tenth business days.

The ETC charges annual management fees of 0.25% and a daily swap rate of 0.00113%. It houses $10m in AUM and is also available in US dollars on LSE (BRND LN) and in euros on Xetra (0LJD GY) and Borsa Italiana (BRND IM).

Similarly, the WisdomTree WTI Crude Oil Pre-roll (WTIB LN) tracks the Nasdaq Commodity Crude Oil ER Index which consists of front-month WTI crude oil futures, rolled between the first and fifth business days of each month.

This ETC also charges annual management fees of 0.25% and a daily swap rate of 0.00113%. It houses $30m in AUM and is also available in US dollars on LSE (WTID LN) and in euros on Xetra (0LJC GY) and Borsa Italiana (WTID IM).

Chris Gannatti, Head of Research, Europe, WisdomTree, commented, “We are committed to providing access to a broad range of oil exposures and increasing the solutions available for sterling-based investors. Interest in oil ETPs has been high in recent months as investors look to take advantage of the rebound in oil prices as demand recovers and supply cuts take place.”

WisdomTree’s range of oil ETCs in Europe currently houses $3.4 billion across 15 products. The majority of those assets, $2.6bn, can be found in the WisdomTree WTI Crude Oil (CRUD LN), Europe’s largest crude oil ETC. CRUD has gathered strong inflows in recent months as bullish investors bet on an oil price recovery.

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