UBS Global Asset Management has listed a new exchange-traded fund on the London Stock Exchange.

The new UBS-ETF CMCI Composite Swap Fund, offers investors efficient exposure to the commodities asset class via a widely diversified and dynamic commodities index, the firm said.

The new fund is based on the UBS Bloomberg CMCI Total Return Index, which consists of several commodities sectors. The individual commodities are weighted in the index according to economic and liquidity data, and this weighting reflects the individual commodities' global consumption patterns.  

The UBS Bloomberg CMCI Total Return Index provides diversification across the entire maturity of the futures curve and thus allows for continuous exposure to the broad commodities asset class. Due to the broad diversification across sectors and maturities, the investor benefits from lower volatility than they would with conventional commodities indices, the firm said.

The UBS-ETF CMCI Composite Swap Fund is available in two share classes: a share class "A" and a share class "I", which is recommended to investors looking to trade in larger volumes. The share class “I” ETFs carry an even more competitive total expense ratio than the share class ”A”. The fund currency of the newly listed UBS ETF is the US dollar. It is traded on the London Stock Exchange in sterling for share class “A” and in dollars for share class “I”. The fund is domiciled in Ireland.

The assets under management in UBS ETFs amount to more than £8 billion (around $12.5 billion), as at 30 April 2013.