New Listing

WisdomTree excludes agriculture from latest commodity ETF launch

EXAG offers exposure to energy, industrial metals and precious metals

Tom Eckett

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WisdomTree has launched a commodities ex-agriculture ETF that offers exposure to energy, industrial metals and precious metals.

The WisdomTree Enhanced Commodity ex-Agriculture UCITS ETF (EXAG) is listed on Deutsche Boerse with a management expense ratio of 0.35%.

Hedged to euros, EXAG tracks the Morgan Stanley RADAR ex Agriculture & Livestock Commodity Total Return index that excludes agriculture and incorporates energy and metals such as platinum and palladium.

According to data from Bloomberg, inflows have surged into commodity ETPs globally so far this year hitting $11.1bn, as at 2 July.

Nitesh Shah, director of research, Europe, at WisdomTree said: “This year has seen a resurgence of interest in commodities. A post-COVID-19 economic recovery, which will lean on increased infrastructure spending, is starting to take shape along with increased inflationary expectations.

“Commodities have historically been one of the best inflation hedges, add a supply shortage for important metals used in infrastructure projects like copper, and you have an environment which could see commodities flourish.”

Alexis Marinof (pictured), head of Europe at WisdomTree added: “Commodities are front of mind for investors due to historically having a positive correlation with inflation.

“Following proactive engagement with clients, we designed EXAG to meet the specific needs of investors who do not want exposure to agricultural and livestock commodities, but still want an enhanced commodities strategy.”

The firm has the largest commodities ETF offering in Europe following the acquisition of ETF Securities in 2018.

This includes the WisdomTree Enhanced Commodity UCITS ETF (WCOG) which has $239m assets under management (AUM).

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