Indiana Grain Company, LLC

Posted: 03/16/10

By: tomgrisafi

ETF Securities will list 14 commodity exchange-traded funds on the Tokyo Stock Exchange this week -- the largest-ever such launch for Asia -- and based on the performance of their counterparts in Japan and elsewhere, they'll likely be well received.

"Most investors' portfolios tend to be underexposed to direct commodities, particularly agricultural commodities -- hence there should be a good potential for growth in this area," said Martin Hennecke, an associate director at Tyche Group Ltd. in Hong Kong.

The first dealings in the 14 commodity ETFs will begin Friday.

The offerings will consist of nine individual securities covering aluminum, copper, corn, crude oil, gasoline, natural gas, nickel, soybeans and wheat, and five index securities covering all commodities, energy, industrial metals, agriculture and grains.

"This large number of commodity ETFs reflects the demand for commodities, a wide variety of investors using commodity ETFs and the large number of investment strategies being implemented," said Nik Bienkowski, chief operating officer at ETF Securities.

"The 14 new commodity ETFs being listed on are not available in the U.S. but only in Europe, and are traded on the London Stock Exchange, NYSE Euronext, Deutsche Borse and Borsa Italiana," he said.

Source: Market Watch

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