First Forward ETC on ETFplus

Borsa Italiana welcomes 10 new ETCs on the ETC segment of ETFplus market issued by ETFS Commodity Securities Limited.

The new issue comprises the following ETCs:

“ETFS Forward Natural Gas” (ISIN JE00B24DM351)
“ETFS Forward All Commodities DJ-AIGCI-F3” (ISIN JE00B24DMC49)
“ETFS Forward Energy DJ-AIGCI-F3” (ISIN JE00B24DMD55)
“ETFS Forward Petroleum DJ-AIGCI-F3” (ISIN JE00B24DMF79)
“ETFS Forward Ex-Energy DJ-AIGCI-F3” (ISIN JE00B24DMG86)
“ETFS Forward Industrial Metals DJ-AIGCI-F3” (ISIN JE00B24DMJ18)
“ETFS Forward Agriculture DJ-AIGCI-F3” (ISIN JE00B24DMK23)
“ETFS Forward Softs DJ-AIGCI-F3” (ISIN JE00B24DML30)
“ETFS Forward Livestock DJ-AIGCI-F3” (ISIN JE00B24DMM47)
“ETFS Forward Grains DJ-AIGCI-F3” (ISIN JE00B24DMN53)

ETCs are financial instruments designed to track the price of commodity futures and give investors an exposure similar to that which could be achieved by managing a long fully cash collateralised unleveraged position in futures contracts of specific maturities, less applicable fees. However, unlike managing a futures position, ETCs involve no need to roll from one futures contract to another, no margin calls, and no other brokerage or other costs in holding or rolling futures contracts (although Security Holders incur other costs in holding ETC). ETCs provide investors with a ‘‘total return’’, comprising a commodity ‘‘excess return’’ (spot price movement plus the roll yield from backwardation and/or contango in the relevant futures market when rolling) plus a collateral return in the form of capital enhancement.

All the 10 new ETC have as underlying the Dow Jones-AIG 3 Month Forward indices which were only recently launched by Dow Jones and AIG Financial Products Corp.
The difference between the new indices and the classic Dow Jones-AIG indices is the roll process, the process is similar save that the contracts that would be the Lead Future and Next Future for the DJ-AIGCISM in three calendar months are instead the Lead Future and Next Future in the current calendar month for the DJ-AIGCI-F3S.

The total expense ratio of all the ETFs is equal to 0,54%.

Please download the relevant public notice: VISUALIZZA PDF