WisdomTree Brent Crude Oil 1yr
WisdomTree Brent Crude Oil 1yr is designed to enable investors to gain a total return exposure to movements in the price of ICE 1 year Brent crude oil futures contracts plus a collateral yield. The exposure is obtained through fully funded uncollateralised swaps with Shell Trading Switzerland AG, a member of the Royal Dutch Shell Group.
WisdomTree Brent Crude Oil 1yr is an exchange traded commodity ("ETC"). Its securities can be created and redeemed on demand by authorised participants and traded on exchange just like shares in a company.
* Formerly ETFS Brent 1yr
|Currency hedged||No – this product is not protected against adverse currency movements|
|Daily Change (27 Mar 2020)||1.10%|
|Price (NAV) (27 Mar 2020)||$35.20|
|Underlying Exposure||Crude Oil (Brent)|
|Replication method||Synthetic - fully funded swap|
|Legal form||Debt security|
|Securities regulator||Financial Conduct Authority (FCA UK)|
|UK Reporting Status||Yes|
|Key Service Providers|
|Trustee||The Law Debenture Trust Corporation p.l.c.|
|Issuer||WisdomTree Oil Securities Limited|
|Registrar||Computershare Investor Services (Jersey) Ltd|
|Counterparty||Shell Trading Switzerland AG, a member of the Royal Dutch Shell Group|
|Daily Swap Rate||0.00388%|
|Entry / Exit fees||None when traded on Exchange|
Listings & Codes
|Listings & Codes|
i The above chart presents information about the difference between the daily market price for shares of the Fund and the Fund's net asset value. The market price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund's NAV is calculated (usually 4:00 p.m. eastern time for most Funds). The vertical axis of the chart shows the premium or discount expressed as a percentage of mid-point.
ICE 1 year Brent oil futures
The price of OSB1 is based on a total return methodology, which means that the price comprises three components: (i) returns from exposure to ICE 1 year Brent crude oil futures contracts; (ii) returns from the roll yield (described below); and (iii) a collateral yield. A futures contract is an agreement to purchase a commodity at an agreed price, with delivery and payment to take place at a specified point in the future. Futures contracts are generally disposed of just before the term of the contract expires and new contracts entered into in order to avoid taking actual delivery of the commodity in question (a process known as 'rolling'), so that continuous exposure to the commodity is maintained. The contracts being purchased may be more expensive than the contracts being sold which would cause an investor in commodity futures to make an additional loss. This market trend is known as 'contango'. Alternatively the contracts being purchased may be cheaper than the ones being sold which would result in an additional gain, known as 'backwardation' . This price difference is commonly referred to as "roll yield". As the roll yield is incorporated into the pricing of the ETC, it may therefore have a positive or negative impact on its value depending on whether the relevant futures market is in contango or backwardation.
|Index Name||ICE 1 year Brent oil futures|
|Index Constituent Count||1|
|Index Type||Total Return|
|Reuters Index Ticker||n.a.|
|Security||27 Mar 2020|
|1. Crude Oil (Brent)||100.00%|
The products discussed in this document are issued by WisdomTree Oil Securities Limited (the "Issuer"). The Issuer is regulated by the Jersey Financial Services Commission. Investors should read the prospectus of the Issuer before investing and should refer to the section of the prospectus entitled ‘Risk Factors’ for further details of risks associated with an investment in the securities offered by the Issuer.
Securities issued by the Issuer are direct, limited recourse obligations of the Issuer alone and are not obligations of or guaranteed by any of Shell Trading Switzerland and Shell Treasury any of their affiliates or anyone else or any of their affiliates. Each of Shell Trading Switzerland and Shell Treasury disclaims all and any liability whether arising in tort, contract or otherwise which it might have in respect of this document or its contents otherwise arising in connection herewith.