• World first for listed access to an entire platform of Short & Leveraged commodity indices via ETCs
• 66 new ETCs to be listed making a total of over 120 ETCs available on Deutsche Börse
• 4 new DJ-AIG commodity indices added to ETC platform: cocoa, lead, tin, platinum

ETF Securities, the global pioneer of Exchange Traded Commodities (ETCs) and leading ETC Issuer in Germany, will double the size of its ETC platform with the introduction of 33 Short ETCs and 33 Leveraged ETCs on Deutsche Börse’s Xetra platform. The Short and Leveraged ETCs will complement ETF Securities’ existing 51 Classic and Forward ETCs, which already provide investors long only exposure to different parts of the futures curve.

The 66 new ETCs are all priced off Dow Jones – AIG Commodities IndexSM Indices. These new ETCs comprise 23 individual commodities and 10 basketindices. With the new ETCs, ETF Securities will have created over 120 ETCs providing long, short and leveraged exposure to the world’s major commodity markets.

The new ETCs are to be listed today on the Deutsche Börse and will provide investors access to a wide range of investment and trading strategies. Short ETCs will enable investors to gain from falls in commodity prices and hedge commodity positions. Leveraged ETCs will enable investors to gain from rising commodity prices, providing exposure with 50% less capital. The ETC platform offered by ETF Securities has experienced massive growth in the past eight weeks with assets growing by 50% to over $5.7 billion and daily trading volumes doubling to almost $150 million per day across five European exchanges. The growth in assets has occurred as a result of increased awareness of commodities and ETCs, volatile equity markets creating demand for noncorrelated assets, positive commodity fundamentals, inflation fears and increased portfolio diversification.

Short and Leveraged ETCs will be made available on the following Dow Jones – AIG Commodity Indices:

The 20 new Short and Leveraged Index Securities are:

ETC Short Name	XETRA Code	ETC Leveraged Name	XETRA Code
ETFS Short All Commodities DJ-AIGCISM	9GAT	ETFS Leveraged All Commodities DJ-AIGCISM	4RTS
ETFS Short Agriculture DJ-AIGCISM	9GAS	ETFS Leveraged Agriculture DJ-AIGCISM	4RTR
ETFS Short Energy DJ-AIGCISM	9GAU	ETFS Leveraged Energy DJ-AIGCISM	4RTT
ETFS Short Ex-Energy DJ-AIGCISM	9GAV	ETFS Leveraged Ex-Energy DJ-AIGCISM	4RTU
ETFS Short Grains DJ-AIGCISM	9GAW	ETFS Leveraged Grains DJ-AIGCISM	4RTV
ETFS Short Industrial Metals DJ-AIGCISM	9GAX	ETFS Leveraged Industrial Metal DJ-AIGCISM	4RTW
ETFS Short Livestock DJ-AIGCISM	9GAY	ETFS Leveraged Livestock DJ-AIGCISM	4RTX
ETFS Short Petroleum DJ-AIGCISM	9GAZ	ETFS Leveraged Petroleum DJ-AIGCISM	4RTY
ETFS Short Precious Metals DJ-AIGCISM	9GA0	ETFS Leveraged Precious Metals DJ-AIGCISM	4RTZ
ETFS Short Softs DJ-AIGCISM	9GA1	ETFS Leveraged Softs DJ-AIGCISM	4RT0

ETC Short Name	XETRA Code	ETC Leveraged Name	XETRA Code
ETFS Short Aluminium	9GA2	ETFS Leveraged Aluminium	4RT1
ETFS Short Cocoa	4RTQ	ETFS Leveraged Cocoa	4RUP
ETFS Short Coffee	9GA3	ETFS Leveraged Coffee	4RT2
ETFS Short Copper	9GA4	ETFS Leveraged Copper	4RT3
ETFS Short Corn	9GA5	ETFS Leveraged Corn	4RT4
ETFS Short Cotton	9GA6	ETFS Leveraged Cotton	4RT5
ETFS Short Crude Oil	9GA7	ETFS Leveraged Crude Oil	4RT6
ETFS Short Gasoline	9GA8	ETFS Leveraged Gasoline	4RT7
ETFS Short Gold	9GA9	ETFS Leveraged Gold	4RT8
ETFS Short Heating Oil	4RTA	ETFS Leveraged Heating Oil	4RT9
ETFS Short Lead	4RTM	ETFS Leveraged Lead	4RUL
ETFS Short Lean Hogs	4RTB	ETFS Leveraged Lean Hogs	4RUA
ETFS Short Live Cattle	4RTC	ETFS Leveraged Live Cattle	4RUB
ETFS Short Natural Gas	4RTD	ETFS Leveraged Natural Gas	4RUC
ETFS Short Nickel	4RTE	ETFS Leveraged Nickel	4RUD
ETFS Short Platinum	4RTN	ETFS Leveraged Platinum	4RUM
ETFS Short Silver	4RTF	ETFS Leveraged Silver	4RUE
ETFS Short Soybean Oil	4RTG	ETFS Leveraged Soybean Oil	4RUF
ETFS Short Soybeans	4RTH	ETFS Leveraged Soybeans	4RUG
ETFS Short Sugar	4RTJ	ETFS Leveraged Sugar	4RUH
ETFS Short Tin	4RTP	ETFS Leveraged Tin	4RUN
ETFS Short Wheat	4RTK	ETFS Leveraged Wheat	4RUJ
ETFS Short Zinc	4RTL	ETFS Leveraged Zinc	4RUK

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. Until now, it has been difficult for investors to benefit from falling prices as to go short, investors would have had to borrow ETCs and then sell those ETCs in the market - both of which was difficult and relatively expensive. Additionally, shorting exposed investors to unlimited losses but the new short ETCs limit the maximum loss to the investors’ initial investment.

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 investor’s to gain additional portfolio diversification.

In addition to their obvious benefits, Short and Leveraged ETCs provide investors with a wider range of investment strategies including: pairs trades when an investor has a view that one commodity will rise or fall in price relative to another commodity; reducing or increasing commodity price risk where a portfolio owns commodity companies; and investment strategies which exploit the shape of a commodity futures curve allowing investors to “short” the part of the curve in contango and to go “long” on the part of the curve in backwardation.

Short and Leveraged ETCs also offer the same benefits as the existing ETCs. They are simple to trade on a major stock exchange, they can be settled and held in ordinary brokerage accounts, they are transparent and have a clear pricing formula. In addition, ETCs are highly liquid with multiple market makers providing liquidity and continuous pricing. Since Short and Leveraged ETCs are priced off the same underlying markets as the existing ETCs, this implies that the liquidity of Short and Leveraged ETCs will also be similar. In addition to liquidity on five European stock exchanges, ETF Securities can create $500 million of additional Short and Leveraged ETCs each day. In total, ETF Securities can create over $1 billion of new ETCs on a daily basis across its range of over 120 ETCs. The minimum investment is one ETC.

In total, ETF Securities now offers platforms of physically backed precious metal ETCs and Classic, Forward, Short and Leveraged ETCs providing exposure to energy, agriculture, livestock, industrial metals and precious metals. The ETCs have been listed on five major European stock exchanges in dedicated ETC trading segments.

First dealings in the Short and Leveraged ETCs are expected to commence on the Deutsche Börse tomorrow.

Commenting on launching another world first, Graham Tuckwell, Chairman of ETF Securities, said:

“ETF Securities is synonymous with exchange traded commodities (ETCs). By offering a full platform of ETCs, German and Austrian investors can now utilise ETCs for almost any commodity investment and trading strategy. The new Short and Leveraged ETCs will complement the existing ETCs which provide unleveraged long exposure through Classic and Forward ETCs. Now investors can take advantage of rising or falling commodity prices in addition to the choice of ETCs along each commodity futures curve.

“We have seen unrivalled support and demand for ETCs. Investors are now realising that commodities can offer benefits to a portfolio due to their low correlation to equities. 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 eight weeks there has been a huge surge in global demand for ETCs and we recently passed the landmark of $5.7 billion invested in our existing offering. Over this period, assets and trading volumes are up over 50%. With listings on five of Europe’s major exchanges, ETF Securities has successfully delivered simple, cost-efficient and accessible products for all investors.”

* ‘Backwardation’ and ‘contango’ – definitions:

Backwardation refers to a downward sloping forward curve (as in an inverted yield curve) or, more formally, it is the situation where, and the amount by which, the price of a commodity for future delivery is lower than the spot price, or a far future delivery price lower than a nearer future delivery.

Contango is the opposite to ‘backwardation’ and refers to an upward sloping forward curve (as in the normal yield curve) in prices or, more formally, it is the situation where, and the amount by which, the price of a commodity for future delivery is higher than the spot price, or a far future delivery price higher than a nearer future delivery.

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.

For further information, please contact:

Roman Townsend
Penrose Financial
Tel: +44 (0) 20 7786 4875

ETF Securities continues its series of conferences for finance professionals:

Overview of the fundamentals of each Precious metals: Platinum, Palladium, Silver and Gold

Date: 12th June
Time: 12:00am - 19:00pm London Time
City: London
Venue: City Conference Centre, 80 Coleman St, EC2R 5BJ www.cityconferencecentre.co.uk

Guest Speakers:

• Natalie Dempster (World Gold Council)
• James Steel (HSBC)
• Anton Berlin (Norilsk)
• Philip Klapwijk (GFMS)
• David Jollie (Johnson Matthey)
• Ross Norman (The Bullion Desk)