May 11, 2008

New tin investment products launched

Dow Jones Commodity Indexes has launched sub indexes for platinum, lead and tin. The metals are not included in Dow Jones' main benchmark commodity index because not enough is produced globally or traded on exchanges.

The indexes have been licensed to ETF Securities Ltd, a London based provider of exchange traded commodities.

About USD 155 billion was invested in long only funds and products tracking commodity indexes at the end of 2007, of which USD 42 billion is invested in the benchmark Dow Jone -AIG Commodity Index of 19 futures.

The other main commodity indexes are the Standard and Poors’ Goldman Sachs Commodity Index and the Rogers International Commodity Index. The S&P GSCI also does not include tin, while the RICI has a 1% tin weighting. An estimated USD 30 billion has flowed into commodity indexes so far in 2008, as investors have diversified their portfolios away from equities.