BetaShares today announced the launch of the first exchange traded fund (ETF) on the ASX that provides exposure to a broadly diversified basket of commodities.
The ETF, which will trade under the ASX code “QCB”, aims to track the performance of the S&P GSCI Light Energy Index. The Index tracks the price performance of futures contracts on 24 major global commodities from a range of sectors comprising energy, industrial metals, precious metals, agriculture and livestock.
The ETF is currency hedged, substantially eliminating the impact of movements in the AUD/USD exchange rate to provide a purer exposure to commodities.
Investors are increasingly seeking to obtain exposure to commodity price movements, and commodities are now accepted as one of the building blocks of a balanced porfolio by global investors. The ETF allows investors to gain broadly diversified commodities exposure without the need to invest in the futures market or take physical delivery of commodities.
In addition, investors should note that the ETF offers significant commodity exposure above and beyond the “bulk commodities” (e.g., iron ore and coal) that drive stocks such as BHP and Rio. Bulk commodities are not included in the index tracked by the ETF.