Legal & General Investment Management has launched the L&G Multi-Strategy Enhanced Commodities ex-Agriculture & Livestock UCITS ETF, working in partnership with Barclays.
The fund will use the Barclays Backwardation Tilt Multi-Strategy ex Agriculture & Livestock Capped Total Return Index across Energy, Precious Metals and Industrial Metals. The index has ‘portfolio enhancements’ through rolling contracts to specific commodities while excluding agriculture and livestock holdings.
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Aanand Venkatramanan, head of ETFs, EMEA at LGIM, said: “The launch of the Enhanced Commodities ETF further reflects LGIM’s commitment to active index design, building on our range of investment strategies constructed around the potential for enhanced returns, rather than traditional benchmarks. In our current macroenvironment, commodities could offer an attractive investment case, defined by lower correlation and diversification benefits.”
The new fund will join existing LGIM commodity ETFs including the L&G All Commodities UCITS ETF and the L&G Longer Dated All Commodities UCITS ETF. In 2021, L&G introduced the L&G Multi-Strategy Enhanced Commodities UCITS ETF, also in partnership with Barclays.
Ben Redmond, head of QIS structuring EMEA Barclays, said: “We are pleased to continue the collaboration between LGIM and Barclays with the launch of this new ETF using the same performance drivers as the existing Enhanced Commodity UCITS ETF launched in 2021. In addition this new ETF excludes two commodity sectors in order to address the demand expressed by certain investor types.”
