WisdomTree has listed a new GBP-hedged iteration of its commodity strategy Exchange-Traded Commodity (ETC) on the London Stock Exchange.
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By ETFWorld.co.uk
Alexis Marinof, CEO, Europe WisdomTree
The WisdomTree Enhanced Commodity Carry – GBP Daily Hedged began trading on January 28, 2026.
This ETC provides UK investors with a currency-hedged route to a complex strategy designed to generate returns from the shape of commodity futures curves, independent of direct commodity price movements.
Core Product Specifications
The table below summarises the key details of this new listing.
| Feature | Specification |
|---|---|
| Product Name | WisdomTree Enhanced Commodity Carry (Acc) GBP-Hedged |
| ISIN | XS3246964079 |
| Listing Date | 28 January 2026 (LSE) |
| Underlying Index | BNP Paribas Enhanced Commodity Carry GBP Hedged Total Return Index |
| Investment Focus | Commodity Carry Factor |
| Total Expense Ratio (TER) | 0.34% p.a. |
| Fund Currency | GBP |
| Currency Hedging | Yes, daily GBP-hedged |
| Domicile | Ireland |
| Distribution Policy | Accumulating |
Strategy Mechanics: Capturing the “Carry”
This ETC tracks a proprietary BNP Paribas index. The strategy is market-neutral, aiming for returns uncorrelated to commodity spot prices.
The index exploits the “carry” or “roll” cost in futures markets—the difference between near-term and longer-dated futures contracts for the same commodity. It systematically goes long a basket of commodity futures with up to 12 months to expiry and shorts a basket of near-term contracts, targeting the premium from this differential.
Critically, the index applies 3x leverage to this long-short spread. This means it targets exposure of +300% to the long leg and -300% to the short leg, magnifying both potential gains and losses from the carry trade. The index rebalances these exposures monthly.
Costs and Structure
The ETC has a Total Expense Ratio (TER) of 0.34% per annum. This is lower than the 0.40% management fee initially reported for the unhedged version of the product.
The product is structured as an Exchange-Traded Commodity (ETC), not a UCITS ETF. It uses a synthetic (swap-based) replication method, where a swap counterparty—BNP Paribas Arbitrage SNC—provides the index return. To mitigate counterparty risk, the swap is fully and over-collateralised (105%) with assets held by Bank of New York Mellon as custodian.
The new listing is distinguished by its daily GBP-hedged share class. This mechanism aims to eliminate the impact of USD/GBP currency fluctuations on returns for sterling-based investors, isolating the performance to the pure commodity carry strategy.
Performance and Market Context
The unhedged USD version of this ETC (ISIN: XS3022291473) launched in April 2025 and had gathered approximately €137 million in assets by early 2026. Its short-term performance has been negative; the unhedged version showed a decline of -5.36% year-to-date and a maximum drawdown of -13.17% since inception. The new GBP-hedged version has fallen -5.69% since its issuance on January 21, 2026.
WisdomTree has stated that such strategies are designed for environments of persistent inflation and supply chain uncertainty, offering a differentiated return source that can improve portfolio diversification.
Target Investor and Key Considerations
This ETC is a specialist instrument. It is not suitable for investors seeking direct, unleveraged exposure to commodity prices. It is aimed at sophisticated investors who understand leveraged derivatives and seek a non-correlated return stream for portfolio diversification.
Primary Potential Risks:
Strategy Risk: Returns depend on the persistence of the carry premium. The 3x leverage can amplify losses.
Liquidity Risk: The product is new and small (<€1 million AUM for the hedged share class), which may lead to wider bid-ask spreads.
Complexity Risk: The mechanics involving leveraged long-short futures spreads and swap-based replication are complex.
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