ETF Securities has added to its Exchange Traded Commodity (ETC) platform with the introduction of 33 Leveraged ETCs.

Leveraged ETCs allow investors to earn a positive return when the index is rising with 50 per cent less capital. They earn two times (+2x) the daily percent change in the index before fees and interest.

For example, if the underlying index rises by two per cent in a day, a Leveraged ETC will increase by four per cent and vice versa.
In today’s market where it is increasingly difficult to obtain credit and margin, Leveraged ETCs free up additional capital for investors to gain additional portfolio diversification.

Graham Tuckwell, Chairman of ETF Securities, says, ‘Investors are now realising that commodities can offer benefits to a portfolio due to their low correlation to equities. In times like these when liquidity is tight, Leveraged ETCs can provide these diversification benefits with 50 per cent less capital. In times of economic or financial upheaval, many independent studies have shown that commodities can benefit a portfolio by lowering volatility and/or increasing returns.

‘Over the past thirteen weeks there has been a huge surge in global demand for ETCs and we recently passed the landmark of $5.1 billion invested in our existing offering.’

The new ETCs are available on the London Stock Exchange and complement ETF Securities’ existing Physical, Classic, Forward and the recently launched Short ETCs which provide investors with long and short exposure to the commodities market.

For more information visit www.etfsecurities.com