On Oktober 12 XACT Fonder listed a new ETF that tracks the price of 15 commodities, including oil, electricity, pulp, and gold.
"In recent years the popularity of both commodities and ETFs has increased sharply, so it is only logical for us to offer a commodity ETF," says Henrik Norén, Managing Director of XACT Fonder, the world's largest provider of ETFs with a Nordic focus.
"Our new commodity ETF offers investors a unique opportunity to invest in a product that combines the traditional fund's risk sharing with the stock trading opportunities for a low fee," Henrik Norén continues.
XACT Råvaror is the first exchange-traded fund that combines global exposure with a clear Nordic focus, offering electricity and paper pulp in the commodity mix.
"For those who believe in yet another cold winter, XACT Råvaror offers an interesting investment opportunity. The price of electricity rises with the cold, which will also be reflected in fund performance," says Henrik Norén.
Different commodity-based investments are attracting increasing numbers of investors and have become an integral part of the diversification of risk in many portfolios.
"In a medium risk portfolio with a 10-year investment horizon, we currently recommend up to 20% commodities," says Torbjorn Iwarson, commodity manager at Handelsbanken.
Commodities have performed well, both over the past decade as well as the previous 40 years. They also offer risk diversification and security for long-term savings.
"The commodities included in the index are largely those that the investor will consume in the future, which, in a way, makes an investment in the ETF a simple way to save for future consumption, " says Torbjorn Iwarson.
XACT Råvaror follows the index "SHB Commodity Index Excess Return" which has returned 41.6% in the period January 2005 to September 2010.
The new ETF will be listed on the OMX Stockholm on Tuesday, October 12th. Exchange-traded funds (ETF) are currently the fastest growing financial product, and XACT Råvaror is the ninth new ETF listed by XACT Fonder during the fall of 2010.
ETF Råvaror follows a total of 15 commodities (percentage of fund total): Gasoline (13%), Gasoil (diesel) (13%), Crude oil (13%), Electricity (12%), Copper (11%), Aluminium (9%), Gold (7%), Soybeans (5%), Zinc (4%), Wheat (3%), Cattle (3%), Silver (2%), Pulp (2%), Pork (2% ) and Nickel (1%), all of great importance to the Nordic economies. The ETF is registered in Luxembourg.
For further information, please contact:
Henrik Norén, Managing Director XACT Fonder, + 46 8 701 1222.
XACT is the largest issuer of ETFs on the Nordic market and currently manages SEK 20 billion in 20 ETFs.
XACT Fonder was founded in 2000 by then OM Gruppen AB (now Nasdaq OMX), the same year as the first exchange-traded fund (ETF) was launched in Europe. In 2004, the company was acquired by Handelsbanken and has since then been a wholly owned subsidiary of Handelsbanken. XACT was the first issuer in the world to offer leveraged ETFs with XACT Bull and XACT Bear, launched in 2005. The daily turnover in XACT ETFs averages around SEK 1 billion.