UBS Asset Management has announced that its broad commodities exchange-traded fund (ETF) has passed $1 billion in assets under management. Strong recent inflows are due to investors seeing commodities as a natural hedge against rising inflation, UBS said. The ETF also returned 16% in 2016.
UBS Asset Management global head of investment specialists, passive & ETFs, Clemens Reuter, commented: “There is definitely growing interest from investors in increasing exposure to commodities for their asset allocation strategies and portfolios. In particular, we are seeing demand from European pension funds, alongside asset managers, who have invested extensively in the product.”
The CMCI Composite SF UCITS ETF aims to replicate the returns of an index giving exposure to a basket of more than 25 commodities, with sector and maturity diversification, in order to mitigate the effects of negative roll yield. The ETF is available in US dollar, euro, Swiss franc and sterling denominated versions.