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ETFS Securities breaks $100m AUM for its newly launched equity ETF platform as trading volumes surge
29/07/09
London, 29 July 2009, ETF Securities (ETFS), the global pioneer of Exchange Traded Commodities (ETCs) and 3rd generation Exchange Traded Funds (ETFs), announced today that the AUM of its platform of equity ETFs now exceeds $100m, with trading volumes continuing to rise at a fast pace.
The most popular funds on the platform to date are the ETFS Russell Global Gold Fund (Miners) (AUCO), providing exposure to 79 global mining companies, ETFS FTSE® 100 Leveraged (2x) Fund (LUK2) and ETFS FTSE® 100 Super Short Strategy (2x) Fund (SUK2), tracking 2x leveraged and 2x short versions of the UK leading benchmark the FTSE® 100.
Weekly trading volumes in ETF Securities’ 2x short and 2x leveraged ETFs continue to rise at a rapid pace, pushing through $70mn last week. ETFS Short and Leveraged ETF trading volumes have seen uninterrupted growth since their inception in late June. Last week, trading volumes in the 2x leveraged ETFs (particularly the FTSE 100 leveraged ETF) trended up, trading 3 times more than the 2x short ETFs, indicating that investors are becoming increasingly bullish and may be positioning for a further upswing in equities.
ETF Securities now offers a total of 21 equity ETFs on the ETF Exchange comprising Europe’s first complete platforms of resource-equity ETFs and double leveraged (2x) and double short (-2x) equity ETFs. These ETFs are listed on five European exchanges (London Stock Exchange, Irish Stock Exchange Deutsche Borse, Borsa Italiana, and Euronext Amsterdam) and traded in three currencies (GBP, USD and EUR). They are part of the ETF Exchange initiative, driven by client demand, for increased liquidity, innovative products and reduced credit risks and counter-party exposure. The ETFs are all swap-backed ETFs using multiple counterparties, allowing more efficient tracking, with collateral being held in excess of UCITS guidelines. This issuance model is arguably the most efficient and risk averse available today.
For further information, please contact:
Laura Stevens
Tel: +44 (0) 20 7448 4351
Email: laura.stevens@etfsecurities.com
Notes to Editors:
ETF Securities is a provider of Exchange Traded Commodities (ETCs) and 3rd generation Exchange Traded Funds (ETFs). The management of ETF Securities pioneered the development of ETCs, with the world's first listing of an ETC, Gold Bullion Securities in Australia and London in 2003 and then the world's first entire ETC platform which was listed on the London Stock Exchange in September 2006.
ETF Securities now offers more than 140 Exchange Traded Products (ETPs) with approximately $12 billion in assets as of 27/07/09.
The ETPs provide investors with a wide variety of investment strategies, with ETPs offering resource equities, physical, long, forward, leveraged and short exposure to all commodity sectors. ETPs are simple to access as they are traded in four currencies (EUR, USD, GBP and AUD) and listed on seven major exchanges globally including the London Stock Exchange, NYSE-Euronext Paris, NYSE-Euronext Amsterdam, Deutsche Börse, Borsa Italiana, the Australian Securities Exchange and the Irish Stock Exchange.
ETFs tracking double leveraged (2x) equity indices allow investors to earn a positive return when the index is rising with 50% less capital. ETFs tracking double leveraged equity indices seek to deliver a leveraged return which corresponds to twice the daily percentage change in the level of the underlying index (excluding fees and other costs). For example, if the underlying index rises by 2% in a day, an ETF tracking the double leveraged version of this underlying index will increase by 4% and vice versa.
ETFs tracking double short (-2x) equity indices allow investors to earn a leveraged positive return when the index is falling with 50% less capital. ETFs tracking leveraged inverse equity indices seek to deliver the inverse of twice the daily percentage change in the level of the underlying index (excluding fees and other costs). For example, if the underlying index falls by 2% in a day, an ETF tracking the double short version of this underlying index will fall by 4% and vice versa.
Risk warning: Due to the compounding of daily returns, returns measured over periods longer than one day may differ from twice the underlying index return over that longer period. ETFs tracking double short & leveraged equity indices are only suitable for sophisticated investors who understand leverage, compounded daily returns and are willing to magnify potential losses. Please see the Prospectus for a more detailed explanation and a more complete list of risks, available at www.etfsecurities.com
To learn more about ETF Securities go to: www.etfsecurities.com
This press release 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 securities (together the "Securities")of ETFS Commodity Securities Limited, ETFS Metal Securities Limited or ETFS Oil Securities Limited or any shares (the "Shares") of ETFS Fund Company public limited company (the "Fund") or any other shares or 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 (plus any supplements thereto) in the case of the Securities or the prospectus together with the relevant sub-fund supplement in the case of the Shares (in each case the "Prospectus") and recipients of this advertisement who are considering a purchase of Securities or Shares following distribution of the Prospectus are reminded that any such purchase should be made solely on the basis of the information contained in such Prospectus. This advertisement does not constitute any recommendation regarding the Securities or the Shares.
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 Shares or Securities 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 Shares or Securities) must not be acted upon or relied upon by persons who are not relevant persons. The Fund is a collective investment scheme for the purposes of the FSMA and is a recognised scheme for the purposes of the FSMA. 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 Shares or Securities in, from or otherwise involving the United Kingdom.
This is not an offer of securities for sale in the United States. The Shares and Securities have not been and will not be registered under the US Securities Act or any other applicable law of the United States. The Shares and 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. None of ETFS Commodity Securities Limited, ETFS Metal Securities Limited, ETFS Oil Securities Limited and ETFS Fund Company public limited company (each an "Issuer") has been or intends to become registered as an investment company under the United States Investment Company Act of 1940 (as amended) (the "Investment Company Act") and related rules. Neither the Shares nor the Securities or any beneficial interest therein may be reoffered, resold, pledged or otherwise transferred in the United States or to US persons. If an Issuer determines that any holder of shares is a US Person or any holder of Securities 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 Shares or Securities (as the case may be) held by that Security Holder in accordance with the provisions described in the Prospectus. Neither the Shares nor the Securities may 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 Securities or Shares held by that person in accordance with the provisions described in the relevant Prospectus.
“None of the index providers of the relevant ETFs referred to herein nor their licensors make any warranty or representation whatsoever either as to the results obtained from use of the relevant indices and/or the figures at which such indices stand at any particular day or otherwise. None of the index providers shall be liable to any person for any errors or significant delays in the relevant indices nor shall be under any obligation to advise any person of any error or significant delay therein.”
"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 are licensed for use for certain purposes by ETF Securities Ltd. ETCs based on the DJ-AIGCISM or related 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, AIG-FP, American International Group, or any of their respective subsidiaries or affiliates, makes any representation regarding the advisability of investing in such product(s).
ETF Securities Limited, ETFS Commodity Securities Limited, ETFS Metal Securities Limited, ETFS Oil Securities Limited, and Gold Bullion Securities Limited are each regulated by the Jersey Financial Services Commission. ETFS Fund Company plc, the issuer of the ETFs mentioned in this press release, is regulated by the Financial Regulator in Ireland.
To obtain a copy of the prospectus please visit the website at www.etfsecurities.com
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