• ETFS Leveraged Natural Gas (LNGA) had the highest return last week of 14.9%
• ETC net inflows of $1,030m in the past 8 weeks
• ETFS Physical Gold (PHAU) contributed to 30% of ETC inflows in the past 8 weeks
• Banca IMI, Goldman Sachs and La Branche sign up as ETC market makers

ETF Securities, the global pioneer of exchange traded commodities (ETCs), has seen another successful launch of ETCs to the market with $155m garnered by the new ETCs in just eight weeks. Short and Leveraged ETCs have contributed to 15% of all net inflows across all ETCs. The reasons for the high demand for the new ETCs are a reflection of the current market conditions with volatile equity markets creating demand for non-correlated assets. Increased knowledge of commodities, combined with the increased ETC range of the new Short and Leveraged ETCs have also contributed to the increased demand from investors. Despite some  volatility in the commodity markets and the credit crisis, ETCs have experienced $1,030m of net inflows over the past eight weeks.

Last week was a record week for Short and Leveraged ETCs, 11 Short ETCs experienced inflows of $20m, while 23 Leveraged ETCs experienced net inflows of $30m. The listing of Short ETCs and Leveraged ETCs has come at a time when investors are using different tools to access the commodity markets. With 66 new Short and Leveraged ETCs, investors now have greater choice to implement different investment strategies.

33 Short ETCs were listed on the 22nd February 2008 garnering $110m of assets. 80% of Short ETC assets have been invested in ETCs tracking individual commodities and 20% of Short ETC assets have been invested in ETCs tracking baskets of commodities. The most popular Short ETCs to date have been ETFS Short Crude Oil (SOIL), ETFS Short Gold (SBUL) and ETFS Short All Commodities (SALL). The top performing Short ETC since launch has been ETFS Short Coffee (SCFE) which is up approx 17% in eight weeks.

Short ETCs allow investors to earn a positive return even when the index is falling. Short ETCs earn minus one times (-1x) the daily change in the index (before fees and interest). For example, if the underlying index falls by 2% in a day, a Short ETC will increase by 2% and vice versa. Getting inverse exposure has previously involved shorting the ETC, covering with a stock borrow and buying back the ETC at a later date to realise the profit or loss. ‘Short’ ETCs have simplified this process and reduced the costs of shorting dramatically.

33 Leveraged ETCs were listed on 11th March 2008 garnering $45m of new assets, up 200% in the past week alone. 80% of Leveraged ETC assets have been invested in ETCs tracking individual commodities and 20% of Leveraged ETC assets have been invested in ETCs tracking baskets of commodities. The most popular Leveraged ETCs to date have been ETFS Leveraged Crude Oil (LOIL), ETFS Leveraged Gasoline (LGAS), ETFS Leveraged Heating Oil (LHEA) and ETFS Leveraged Gold (LBUL). Last week ETFS Leveraged Natural Gas (LNGA) had the highest return of 14.9% while the top performing Leveraged ETC since launch has been ETFS Leveraged Heating Oil (LHEA) up approx 28% in six weeks.

Leveraged ETCs allow investors to earn a positive return when the index is rising with 50% less capital. Leveraged ETCs earn two times (+2x) the daily change in the index (before fees and interest). For example, if the underlying index rises by 2% in a day, a Leveraged ETC will increase by 4% 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.

ETF Securities has signed 3 new market makers for the ETC platform. Banca IMI and Goldman Sachs have signed up as authorised participants and La Branche as a liquidity provider. They join the following world class companies who are already providing liquidity and continuous pricing for ETCs: Flow Traders, Nyenburgh, Susquehanna, Morgan Stanley, Barclays Capital, UBS, ABN Amro, HVB, HSBC, Merrill Lynch, Citigroup, Société Générale, Winterflood and JP Morgan. ETF Securities now has more authorised participants/liquidity providers than any other ETF/ ETC issuer in Europe. This in turn offers superior liquidity to investors who use ETCs to gain commodity exposures. Investors can buy and sell the new ETCs through regulated brokers or approved market makers. ETCs can be traded with all the same order types available to equities, including market, limit and stop orders.

ETF Securities now has the most complete and successful ETC platform globally. The ETC platform includes physically backed precious metal ETCs, as well as Long, Forward, Short and Leveraged ETCs providing exposure to indices tracking energy, agriculture, livestock, industrial metals and precious metals futures markets. Over the past eight weeks, the two most popular ETCs were ETFS Physical Gold (PHAU) and ETFS Agriculture (AIGA). PHAU experienced $310 million of net inflows, reaching $1 billion in total assets while AIGA experienced $210 million of net inflows, reaching $960 million in total assets. The ETCs are listed in dedicated ETC trading segments on the five major European stock exchanges.

Commenting on the success of the new range of ETCs, Nik Bienkowski, Chief Operating Officer, said:

“The rationale to launch the platform of Short and Leveraged ETCs is twofold. Firstly, it provides the most complete access to commodities and allows more trading strategies for a broader investor base. This has allowed investors to enjoy impressive returns resulting from unprecedented global demand for commodities.

Secondly, we wanted to offer investors exposure to a broad range of commodities which have historically been extremely difficult to access. Investors appreciate the key features of ETCs including liquidity, transparency and cost efficiency. This has led to our assets growing by over 100% since the start of this year to $5.4 billion.

Over the past eight weeks the huge surge in global demand for ETCs has continued. The new 66 Short and Leveraged ETCs have garnered $155m assets in eight weeks which is extremely impressive. This growth is the fastest asset gathering we have experienced in any of our ETC launches to date, which has come as a result of the broad range of investment strategies one can implement now using Short, Leveraged and Long ETCs.

We are pleased to welcome Banca IMI, Goldman Sachs and La Branche to join our panel of market makers of which we now have the largest panel of market makers compared to any ETF/ETC Issuer in Europe. As a result, weekly ETC trading volumes have exploded to over $800m in value and assets have increased by over 100% this year to over $5.4 billion.”

Risk warning: Investment in Short and Leveraged Commodity Securities involve additional risks to those associated with the Issuer’s existing Commodity Securities offering. Your particular attention is referred to the Risks and Warnings Section of the Short and Leveraged Commodity Securities Prospectus.

ETF Securities continues its series of conference calls for finance professionals:

ETC Investment Strategies
Date: 24th April
Time: 11:00am or 15:00pm London Time
Click here to register

Why you should have oil in your portfolio
Date: 1st May
Time: 11:00am or 15:00pm London Time
Click here to register

Investing in Commodities as an alternative asset class
Date: 8th May
Time: 11:00am or 15:00pm London Time
Click here to register

Investment Case for Precious Metals
Date: 15th May
Time: 11:00am or 15:00pm London Time
Click here to register

The Fundamentals of Industrial Metals
Date: 22nd May
Time: 11:00am or 15:00pm London Time
Click here to register

Notes to editors:
The management of ETF Securities Limited pioneered the development of Exchange Traded Commodities (ETCs), in 2003. Building on its success ETF Securities created the world’s first entire ETC platform which was listed on the London Stock Exchange in September 2006. Since then, ETF Securities has listed its ETCs on Europe’s major exchanges (Frankfurt, Paris, Amsterdam and Italy) with each exchange creating a separate ETC segment. With Classic, Forward, Short and Leveraged ETCs available, investors can execute most trading and investment strategies previously not possible.

To learn more about ETF Securities go to: www.etfsecurities.com

This advertisement does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any transferable securities to be issued by ETFS Commodity Securities Limited or any other securities, nor shall it or any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto. Any offer, invitation or solicitation shall be made solely by means of the relevant prospectus and recipients of this advertisement who are considering a purchase of securities following distribution of the prospectus in connection therewith are reminded that any such purchase should be made solely on the basis of the information contained in such prospectus and any supplementary prospectus(es).
This advertisement does not constitute any recommendation regarding the securities of ETFS Commodity Securities Limited.

The communication of this press release is not being made by, and this press release has not been approved by, an authorised person for the purposes of section 21 of the Financial Services and Markets Act 2000 (the “FSMA”). Accordingly this press release is not being distributed to, and must not be passed on to, the general public in the United Kingdom. The communication of this press release or any other document issued in connection with the offer and sale of the ETCs is only being made to and directed at those persons in the United Kingdom falling within the definition of Investment Professionals (as defined in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”), or high net worth entities, and other persons to whom it may otherwise lawfully be communicated, falling within Article 49(1) of the Order or any person to whom it may otherwise lawfully be made (all such persons together being referred to as “relevant persons”). The communication of this press release (or any other document issued in connection with the offer and sale of the ETCs) must not be acted upon or relied upon by persons who are not relevant persons. Persons distributing this press release must satisfy themselves that it is lawful to do so. All applicable provisions of the FSMA must be complied with in respect of anything done in relation to the ETCs in, from or otherwise involving the United Kingdom.

This is not an offer of securities for sale in the United States. Commodity Securities have not been and will not be registered under the US Securities Act or any other applicable law of the United States.Commodity Securities are being offered and sold only outside the United States to non-US persons in reliance on the exemption from registration provided by Regulation S of the US Securities Act. The Issuer has not been and does not intend to become registered as an investment company under the Investment Company Act and related rules. Commodity Securities and any beneficial interest therein may not be reoffered, resold, pledged or otherwise transferred in the United States or to US persons. If the Issuer determines that any Security Holder is a Prohibited US Person (being a US Person who is not a "qualified purchaser" as defined in the Investment Company Act), the Issuer may redeem the Commodity Securities held by that Security Holder in accordance with the provisions described in the Prospectus. Commodity Securities may not be purchased with plan assets of any "employee benefit plan" within the meaning of section 3(3) of the United States Employee Retirement Income Security Act of 1974, as amended ("ERISA"), any "plan" described in section 4975(e)(1) of the United States Internal Revenue Code of 1986, as amended (the "Code") or any entity whose underlying assets include "plan assets" of any of the foregoing by reason of an employee benefit plan's or other plan's investment in such entity, which employee benefit plan, plan or entity is subject to Title I of ERISA or section 4975 of the Code or any United States Federal, state, or local law or non-United States law that is substantially similar to the prohibited transaction provisions of section 406 of ERISA or section 4975 of the Code (any such employee benefit plan, plan or entity, a "Prohibited Benefit Plan Investor"). If the Issuer determines that any Security Holder is a Prohibited Benefit Plan Investor, the Issuer may redeem the Commodity Securities held by that Security Holder in accordance with the provisions described in the Prospectus."

“Dow Jones,” “AIG®” “Dow Jones-AIG Commodity IndexSM,” “DJ-AIGCISM”, “Dow Jones-AIG Commodity 3-Month Forward Index” are service marks of Dow Jones & Company, Inc. and American International Group, Inc. (“American International Group”), as the case may be, and will be licensed for use for certain purposes by ETF Securities Ltd. ETCs based on the DJ-AIGCISM or related or other sub-indices (including single commodity sub-indices) or 3-Month Forward Indexes are not sponsored, endorsed, sold or promoted by Dow Jones, AIG Financial Products Corp. (“AIG-FP”), American International Group, or any of their respective subsidiaries or affiliates, and none of Dow Jones, AIGFP, American International Group, or any of their respective subsidiaries or affiliates, makes any representation regarding the advisability of investing in such product(s).