LGIM Launches Enhanced Commodities Ucits ETF

Legal & General Investment Management (LGIM) has unveiled its latest addition to the ETF market, the L&G Multi-Strategy Enhanced Commodities ex-Agriculture & Livestock Ucits ETF. This innovative multi-strategy active ETF is strategically designed to enhance portfolio diversification and safeguard against the risks of inflation, offering investors a unique opportunity to access diversified exposure to the commodities futures market.

Features and Objectives of the ETF

The newly launched L&G Multi-Strategy Enhanced Commodities ex-Agriculture & Livestock Ucits ETF aims to provide investors with a multi-strategy approach to commodity investing, focusing on portfolio diversification and inflation risk mitigation. Notably, the ETF excludes agriculture and livestock holdings, offering uncorrelated exposure to commodities.

This ETF, classified as Article 6 under the Sustainable Finance Disclosure Regulation, seeks to replicate the performance of the Barclays Backwardation Tilt Multi-Strategy ex Agriculture & Livestock Capped Total Return index. It covers a spectrum of commodities including energy, precious metals, and industrial metals, aligning with the investment objectives of its sister fund, the L&G Multi-Strategy Enhanced Commodities Ucits ETF launched in 2021.

Market Outlook and Expansion Plans

Aanand Venkatramanan, LGIM’s head of ETFs, highlighted the attractiveness of commodities as an investment opportunity in the current macroeconomic environment. With lower correlation and diversification benefits, commodities present an appealing case for investors seeking to enhance their portfolios amidst market uncertainties.

The L&G Multi-Strategy Enhanced Commodities ex-Agriculture & Livestock Ucits ETF will be registered in multiple European countries, including the UK, France, Germany, Italy, Netherlands, and Spain, among others. It will be listed on prominent stock exchanges such as the LSE, Deutsche Boerse, Six, and Borsa Italiana, providing investors across Europe with convenient access to this innovative investment vehicle.

LGIM, with €1.36tn assets under management as of December 31, 2023, reinforces its commitment to offering innovative investment solutions that cater to the evolving needs of investors in navigating today's dynamic market landscape. The launch of the L&G Multi-Strategy Enhanced Commodities ex-Agriculture & Livestock Ucits ETF underscores LGIM's dedication to providing investors with access to diversified and sustainable investment opportunities.