BlackRock unveils diversified commodities ETF

TER of 0.19%

BlackRock has launched a diversified commodities ETF with a total expense ratio (TER) of 0.19%, the iShares Diversified Commodity Swap UCITS ETF.

Replicating the Bloomberg Commodity USD Total Return index, the vehicle will gain exposure to a basket of 20 stocks across five sectors; energy, agriculture, industrial metals, precious metals and livestock. The index selects commodities which are of economic significance to the world economy while capping each sector at 33% and each stock at 15%. Commodities: Buy in January and sell in May? Instead of being physically backed, the ETF employs total return swaps to gain this exposure as it is more practical with commodities such as precious metals or livestock. Fergus Slinger, co...