ETF Securities has added ETCs tracking cocoa, tin, lead and platinum to its platform.

All four new ETCs track sub-indices of the Dow Jones-UBS commodity index series. These, in turn, are priced off the performance of a passive rolling long futures position in the relevant commodities.

All four ETCs carry an expense ratio of 0.49% per annum and are listed on the London Stock Exchange’s ETC section. The ETCs are collateralised by eligible assets, with coverage of between 100% and 110% of the outstanding value.

According to Nick Brooks, head of research at ETF Securities, “The four new long commodity ETCs provide investors with an easy and secure way to invest in the commodities markets. ETFS Tin (TINM) is Europe’s first long tin futures ETC, tracking the DJ-UBS tin total return index. Tin has been a strong performer with the index up 48% over the past 12 months and 271% over the past 10 years on rapidly growing Chinese demand.”

“Cocoa has also performed very strongly recently (up 60% over the past year) as weather disruptions have hit supply and demand has held up better than expected through the economic downturn.”  

“Lead, primarily used in automobile batteries, has been one of the strongest performers of all the DJ-UBS commodity indices over the past decade, up 536% over the period.”