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First oil futures ETF to debut next week

First oil futures ETF to debut next week

Taipei, Sept. 5 (CNA) Yuanta Securities Investment Trust Corp. (????) is scheduled to list Taiwan's first oil futures exchange traded fund (ETF) on the main board on Sept. 7, according to the Taiwan Stock Exchange (TWSE). The TWSE said that the Yuanta S&P GSCI Gold ER ETF will track the S&P GSCI Crude Oil Enhanced Excess Return Index, which is compiled by the S&P Dow Jones Indices, and covers oil futures contracts listed on the New York Mercantile Exchange. Japan and South Korea are the only two markets in Asia to issue oil-related ETFs and Taiwan will become the third after Yuanta Securities Investment Trust lists the ETF on the local main board next week. The company is the wholly-owned subsidiary of Yuanta Financial Holding Co. (???). The Yuanta S&P GSCI Gold ER ETF will be the second commodity futures ETF in Taiwan after Yuanta Securities Investment Trust launched Yuanta S&P GSCI Gold ER Futures ETF in April, which tracks the S&P GSCI Gold Excess Return Index. Yuanta Securities Investment Trust said that the presence of commodity ETFs in Taiwan is expected to help investors here hedge downside risks resulting from investments in fixed income and equity products.
Market analysts said that commodities are likely to weigh more in local investors' asset portfolios at a time when the global equity markets have been facing volatility. The TWSE said that the new ETF is expected to provide an additional option to investors here as the underlying S&P GSCI Crude Oil Enhanced Excess Return Index closely follows the price movement of West Texas Intermediate crude oil futures. The exchange, however, urged investors to be alert over possible risks from the new investment instrument, saying that investors should carefully read through the new product's prospectus before making a decision to pour their money in. Investors here have become more interested in investing in ETFs listed on the main board. The ETFs listed in Taiwan recorded a total NT$187.23 billion (US$5.71 billion) in assets under management as of the end of June, more than double from the previous month, according to the Taiwan-based Securities Investment Trust & Consulting Association (???????????????????).
(By Frances Huang)


Updated : 2021-09-22 14:32 GMT+08:00