Participate in the price of oil and industrial metals with ETCs
For investors who want to participate in a rising Brent Crude Oil price, BNP Paribas offers two types of ETCs: The RICI® Enhanced Brent Oil (TR) ETC (ISIN DE000PB6R1B1/WKN PB6R1B) enables you as an investor to participate in a rising oil price . The BNP-ETC is not currency-hedged, which means you have the additional chance of currency gains and the additional risk of currency losses. The annual management fee for this ETC is 1.00 percent.
With the EUR Hedged RICI Enhanced Brent Crude Oil Index ETC from BNP Paribas (ISIN DE000PB6REB0/WKN PB6REB), BNP Paribas offers investors a currency-hedged option to participate in a rising Brent Crude Oil price. With this BNP-ETC, the exchange rate is neutralized on a daily basis, which significantly reduces the residual risk of an undesirable currency development. This type of currency hedging is much more cost-effective than is the case with “normal” Quanto products. The costs for these are usually three to four percent. The total management fee for this ETC is 1.20 percent per year. Thus, the EUR Hedged RICI Enhanced Brent Crude Oil Index ETC is only 0.20 percent more expensive than the unsecured version.
A notice: Both BNP ETCs invest in one of Jim Rogers’ RICI indices and are therefore roll-optimized. With both ETCs, the interest income generated from the investment is reinvested, so the index level includes the reinvested interest income (total return).
The EUR Hedged RICI Enhanced Industrial Metals Index ETC (ISIN DE000PB8REM3/WKN PB8REM) reflects the development of the RICI® EnhancedSM INDUSTRIAL METALS (TR) INDEX. The index tracks investments in futures contracts on industrial metals, such as copper, aluminum, zinc, lead, nickel and tin, with different maturities. The BNP perpetual certificate is currency-hedged, and the exchange rate is neutralized on a daily basis. The total management fee for this ETC is 1.20 percent per year.