The Source Brent Crude Enhanced T-ETC is part of the company’s Treasury bill-secured ETC range and offers investors exposure to Brent crude oil via the S&P GSCI Brent Crude Enhanced Total Return Index.
It will run alongside the existing ETC linked to the West Texas Intermediate crude oil.
Explaining the rationale behind launching a proposition based on both oil markets, chief executive Ted Hood commented: “Political situations, oil inventories and infrastructure issues on the two sides of the Atlantic can be starkly different. Investors increasingly want exposure to a specific oil contract – Brent or WTI – rather than generic crude oil exposure.”
Historically, West Texas Intermediate was the major global benchmark for the oil market though, as Hood added, Brent crude is becoming a more important benchmark and since 2011 has consistently traded at a premium to it.
The Source Brent Crude Enhanced T-ETC is secured with US Treasury Bills and cash. It is listed on the SIX Swiss Exchange and trades in US dollars.
It is Dublin-domiciled and registered for sale in the UK as well as other European and Scandinavian countries.