The first ETC (exchange traded commodity) based on the mean reversion principle issued by db ETC Index plc has been tradable on Xetra since Monday..…
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ETC name: db Mean Reversion Euro Hedged ETC
Asset class: Commodities
ISIN: DE000A1E6XY8
Total expense ratio: 0.45 percent
Benchmark: db Mean Reversion EUR Index
The db Mean Reversion Euro Hedged ETC allows investors to participate for the first time in the performance of a basket of commodities comprising aluminum, gold, heating oil, corn, wheat and WTI crude oil with currency hedging. The weighting of individual commodities is based on the mean reversion principle. Using this approach, commodities that appear inexpensive relative to their mean are overweighted while commodities that appear relatively expensive are underweighted. The weighting of individual commodities in the reference index db Mean Reversion Index is mainly calculated on the basis of their average price over the last 365 days in relation to their five-year mean. The index weighting is adjusted as soon as the 12-month average of a commodity significantly deviates from its five-year mean.
Deutsche Börse’s ETC segment product range currently comprises 179 instruments. The monthly trading volume of ETCs on Xetra averages around €550 million.
Source: ETFWorld – Deutsche Börse
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