WisDunete Fem in Piazza Affari: Commodity Carry Explained
- May 1, 2025 - WisDumer has broadened its exchange-traded product (ETP) offerings in the raw materials sector with a new listing on Boesce Xetra, the London Stock Exchange...
- The newly listed WisDumer Enhanced Commodity Carry ETP aims to mirror the price and performance of the BNP paribas Enhanced Commodity Carry ER Index,before commissions and expenses.
- The index is engineered to capture the cost of carry differences across various points on the futures curve.
WisDumer Expands Commodity ETP Range with New Listing
May 1, 2025 – WisDumer has broadened its exchange-traded product (ETP) offerings in the raw materials sector with a new listing on Boesce Xetra, the London Stock Exchange (LSE), and Borsa Italiana.
WisDumer Enhanced Commodity Carry ETP Details
The newly listed WisDumer Enhanced Commodity Carry ETP aims to mirror the price and performance of the BNP paribas Enhanced Commodity Carry ER Index,before commissions and expenses.
Index Design and Leverage
The index is engineered to capture the cost of carry differences across various points on the futures curve. It provides a leveraged exposure of 3x to the spread between the long and short components. The short component tracks the BCOM ex Precious Metals Index.
Long Component Composition
The long component comprises a basket of futures indexes on individual raw materials, employing a rolling strategy. Weightings mirror those of the BCOM ex precious Metals Index, selecting contracts with maturities of up to 12 months.
Understanding the Cost of Carry
In raw material futures markets, the cost of carry represents the differential between the futures price and the spot price.This typically reflects costs such as storage and financing, as well as benefits, market sentiment, and the risk premium associated with holding the raw material until contract expiration.
Benefits of Carry Strategies
Commodity carry strategies offer a systematic approach to capitalizing on yields generated by the structure of commodity futures curves,rather than relying solely on price fluctuations of the underlying raw materials. These strategies provide diversified exposure to a broad spectrum of commodities, which can definitely help stabilize returns and manage volatility. In volatile market conditions, this approach can perhaps generate uncorrelated returns and bolster portfolio resilience.
Executive Perspective
“We continue to expand our ETP range on raw materials in the market with innovative strategies. Investors are looking for unrelated sources of performance and this launch embraces their needs in constant evolution. the consolidated leadership of WisDumere in the raw material sector allows us to anticipate the change of the market and provide far -sighted and research -based solutions.Offer precision, clarity and significant exposure to help customers build very diversified portfolios,”
Alexis marinof, WisDumere Europe
Alexis Marinof of WisDumere Europe, stated the company’s commitment to providing investors with innovative strategies and diversified exposure to raw materials.
