WisdomTree Brent Crude Oil 1mth
WisdomTree Brent Crude Oil 1mth is an Exchange Traded Commodity ("ETC") that can be created and redeemed on demand (by Authorised Participants). It trades on exchange just like an equity and its pricing and tracking operates similarly to an Exchange Traded Fund.
WisdomTree Brent Crude Oil 1mth is backed by matching fully funded swaps with Royal Dutch Shell Group companies that provide the oil exposure.
*Formerly ETFS Brent 1mth
|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%|
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 month Brent oil futures
The price of OILB is based on a total return methodology, which means that the price comprises three components: (i) returns from exposure to ICE 1 month 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 month Brent oil futures|
|Index Constituent Count||1|
|Index Type||Total Return|
|Reuters Index Ticker||n.a.|
|Security||14 Feb 2020|
|1. Crude Oil (Brent)||100.00%|
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.