New Listing

SocGen launches six ETCs on Deutsche Boerse following Commerzbank acquisition

The French bank hopes to take advantage of the strong retail markets

Theo Andrew

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Société Générale has launched six exchange-traded commodities (ETC) strategies as it expands its product offering into Germany following the integration of Commerzbank equity markets and commodities (EMC) business in 2020, ETF Stream can reveal.

The firm completed the acquisition of Commerzbank EMC in May 2020 and is looking to leverage its market presence in Germany as well as its new structuring capabilities following the purchase.

SocGen launched its first product in October, the SG ETC Light Sweet Crude Oil (WTI) Future (SN5DAS), which is listed on the Deutsche Boerse with a total expense ratio (TER) of 0.85%.

Last week, SocGen listed five more ETCs on the Deutsche Boerse, including the SG ETC EUA Future (ETC000) – offering exposure to the EU’s Carbon Allowances via the ICE EUA Futures index – with a TER of 4%.

The remaining ETCs comprise the SG ETC Gold Future (ETC073) and the SG ETC Silver Future (ETC074), with TERs of 1%, and the SG ETC Brent Oil Future (ETC069) and SG ETC Natural Gas Future (ETC070) with overall expense ratios of 0.90%.

SocGen said it decided to enter to take advantage of the “favourable retail market with strong organic growth since COVID-19”.

The French giant has been active in the ETC market in Italy, with a range listed on the Borsa Italiana.

It is also the first launch from the French asset manager since the sale of Lyxor to Amundi in January.

SocGen’s disposal of Lyxor in an €825m deal in January saw it exit the ETP issuer space in Europe, however, the firm is still active as an ETF service provider on the continent.

The firm currently provides authorised participant, market making, swap counterparty and index provider services to ETF issuers.

At the time of the sale, Lyxor was the third-largest ETF issuer in Europe with €77bn assets under management (AUM).

Last month, Amundi started merging Lyxor ETFs with its own product in a bid to achieve economies of scale and grow its ESG range.

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