ETF Securities launched 4 new (ETCs) on the LSE which are designed to track the cocoa, tin, lead and platinum Dow Jones – UBS Commodity Indices, priced off futures contracts. ETF Securities said these indices are up an average of 44 per cent in the past 12 months. ETF Securities said it launched the funds because commodity ETC assets have nearly tripled year to date in 2009, while volumes have doubled due to investor demand for single commodity investing. The four new ETCs are: ETFS Cocoa (COCO), ETFS Tin (TINM), ETFS Lead (LEED), and the ETFS Platinum (PLTM).
“commodities-now” reports that, “ETFS Cocoa (COCO): The DJ-UBS Cocoa Total Return Index was up 60% in the 12 months to 2 Nov 2009 and was up 24% in 3Q 2009 alone. The Index has also seen impressive growth over longer time horizons, with 5 and 10 year returns of 85% and 198% respectively. As has been the case for sugar, supply shortages have been supporting cocoa prices recently with the potential impact of El-Nino weather disruptions and upward demand revisions on improving economic activity indicators adding further support to prices.”
“commodities-now” reports that, “ETFS Tin (TINM): The DJ-UBS Tin Total Return Index increased by 48% in the 12 months to 2 Nov 2009 and was up 9% in 3Q 2009. The index is up 110% and 271% respectively over the past 5 and 10 years, outperforming broad industrial metals returns as measured by DJ-UBS Industrial Metals Total Return Index(sm) (up 79% and 162% on a 5 and 10 year basis respectively).The International Tin Research Institute (ITRI) expects almost all the growth in tin demand over the coming 4 years to come from China and other emerging Asian markets, with both solder and tinplate usage increasing.”
“commodities-now” reports that, “ETFS Lead (LEED): The DJ-UBS Lead Total Return Index increased 34% this year to 2 Nov 2009. The index has been one of the strongest performers of all of the DJ-UBS Commodity Indexes(sm) over the past decade, up 536% in the 10 years to 2 Nov 2009. Seventy percent of world lead production is used in lead-acid batteries that are largely used in automotive production. In 2010 China is expected to account for approximately 45% of total world annual demand for lead, with 8% demand growth for the country forecast over the coming year according to International Lead and Zinc Study Group.”
“commodities-now” reports that, “ETFS Platinum (PLTM): The DJ-UBS Platinum Total Return Index increased by 41% in the 12 months to 2 Nov 2009, and was up 10% in 3Q 2009. The index is up 469% over the past 10 years, over twice the return of the DJ-UBS Precious Metals Total Return Index(sm). Stronger auto production this year, particularly in the US and Europe, has provided cyclical support to platinum demand over 2009, complemented by strong trend growth in car and truck fleets in China and other emerging markets. Platinum supply is affected by infrastructure and labour shortages while mine production hit its lowest level since 2003 last year, in decline for two consecutive years.”