Jefferies Launches Wildcatters E&P ETF
Jefferies announced the launch of the Jefferies | TR/J CRB Wildcatters Exploration & Production ETF (the "WCAT ETF"), an exchange-traded fund (ETF) which seeks investment results that replicate as closely as possible, before fees and expenses, the price and yield performance of the recently launched Thomson Reuters / Jefferies CRB Wildcatters Energy E&P Equity Index (the "CRB WCAT Index"). The new ETF begins trading today, January 20th, on NYSE Arca under the ticker symbol WCAT.
Building upon the 50-plus year history of the Thomson Reuters / Jefferies CRB Index ("the CRB Index"), the CRB-EQ group of indices offers investors access to benchmarks for globally traded equities of companies principally engaged in the production and distribution of commodities and commodity-related products and services in the agriculture, industrial metals, energy and precious metals sectors.
The CRB WCAT Index, which follows the introduction of the CRB-EQ indices, also provides a benchmark for the equities of commodity-related companies, but in particular provides exposure to stocks of oil and gas exploration and production companies based in the US and Canada. These companies are largely underrepresented in major stock market and energy sector indices. Approximately two-thirds of the proved reserves of the Wildcatters Index are natural gas, an energy source that produces roughly 50 percent fewer greenhouse gas emissions than coal or oil. The CRB WCAT Index is reported under the ticker WCATI.
"An investment in natural gas is an investment in the future of American energy independence," said Adam De Chiara, Co-President of Jefferies Asset Management. "The Wildcatters index provides exposure to a corner of the market to which most investors are underexposed, with minimal duplication of holdings. At the same time, the components of the index are companies that are small enough to benefit from possible changes in drilling restrictions and from expansion of natural gas infrastructure."
The WCAT ETF represents the fourth equity-based ETF based on the Thomson Reuters / Jefferies CRB brand of indices to trade on NYSE Arca. The Jefferies | TR/J CRB Global Commodity Equity Index Fund (CRBQ), tracking the overall performance of the Thomson Reuters / Jefferies CRB Index, began trading in September 2009. In October 2009, the Jefferies | TR/J CRB Global Agriculture Equity Index Fund and the Jefferies | TR/J CRB Global Industrial Metals Equity Index Fund began trading under the ticker symbols CRBA and CRBI, respectively.
ALPS Advisors, Inc. is the investment adviser for the new ETF, and Arrow Investment Advisors, LLC is the investment sub-adviser. ALPS Distributors, Inc. is the distributor of the ETFs. ALPS Fund Services, Inc. will provide administration, compliance, creative services, legal, marketing and tax administration. S-Network Global Indexes, LLC is the index provider for the CRB-EQ group of indices. Jefferies and Thomson Reuters are brand licensors for the CRB-EQ indices and for the new ETFs.