RBS has launched the world's first ETF that tracks an index exclusively made up of Commodity Trading Adviser (CTA) managers.
Launched on the Deutsche Borse in Frankfurt, the RBS Market Access CTA Index ETF will provide exposure to "a well-diversified pool of CTA managers, including some of the world's biggest CTA names, together with market specialists and smaller managers", says the bank.
RBS says the launch has come about through listening to its clients' needs and having forged the right partnerships within the CTA industry in order to deliver this new range of CTA-linked indices.
The ETF will track the performances of the following indices: the RBS CTA Index, which allocates an equal weighting to the RBS Discretionary CTA Index consisting of CTAs who specifically select their investments by using a ‘discretionary' trading strategy. And the RBS Systematic CTA Index, consisting of CTAs using mathematical models to execute a ‘systematic' trading strategy.
Any risk of blue-chip bias has been alleviated through a strategy in which the constituent indices allocate a weighting to CTAs based on their relative performance, volatility and correlations, rather than their name or reputation playing any role.
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