Two new Jefferies ETFs began trading Tuesday on NYSE Arca. The ETFs both sport an expense ratio of 65 bps.
The TR/J CRB Global Agriculture Equity Index Fund and the TR/J CRB Global Industrial Metals Equity Index Fund are each based on a Thomson Reuters / Jefferies index.
The agriculture ETF invests in equities of companies who produce or distribute agricultural products. The metals ETF invests in equities of companies that produce or distribute base/industrial metals or related products.
The launch follows that of the TR/J CRB Global Commodity Equity Index Fund, which began trading in September.
"At times, commodity equities may outperform futures and vice versa," stated Adam De Chiara, co-president of Jefferies Asset Management. "At times, certain commodity sectors may present more favorable investment opportunities."
Company Press Release
NEW YORK, October 28, 2009 – Jefferies today announced the launch of two additional exchange traded funds (ETFs) based on the newly launched Thomson Reuters / Jefferies CRB-EQ series of indices. Both the Jefferies | TR/J CRB Global Agriculture Equity Index Fund and the Jefferies | TR/J CRB Global Industrial Metals Equity Index Fund began trading on NYSE Arca on October 27, 2009 under the ticker symbols CRBA and CRBI, respectively.
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. Last month, Jefferies launched the composite-tracking Jefferies TR/J CRB Global Commodity Equity Index Fund (NYSE: CRBQ), the first ETF product based on the CRB-EQ series of indices. As of October 26, 2009, there were 1.35 million newly created CRBQ shares with average daily trading volume since inception of approximately 78,000 shares.
"Commodity investing need not be one dimensional," said Adam De Chiara, Co-President of Jefferies Asset Management. "At times, commodity equities may outperform futures and vice versa. At times, certain commodity sectors may present more favorable investment opportunities. Just as investors look to commodities to diversify their overall portfolios, they can now diversify commodity exposure itself by utilizing a multi-tiered approach that includes the CRB-EQ family of products."
The Jefferies | TR/J CRB Global Agriculture Equity Index Fund (NYSE: CRBA) provides exposure to the equity securities of a global universe of listed companies engaged in the production and distribution of agricultural products, including grains, livestock, fertilizers, chemicals, seeds, traits (seed characteristics attained through genetic modification) and equipment. The Jefferies | TR/J CRB Global Industrial Metals Equity Index Fund (NYSE: CRBI) offers investors access to equities of companies across the globe engaged in the production and distribution of base/industrial metals and base/industrial metal products, including copper, aluminum, iron ore, steel, nickel and others.
Both ETFs will seek investment results that replicate as closely as possible the price and yield performance of their corresponding CRB-EQ Indices, before fees and expenses.
ALPS Advisors, Inc. is the investment adviser for the new ETFs, 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.
Jefferies, a major global securities and investment banking group, has served companies and their investors for more than 45 years. Headquartered in New York City, with offices in more than 25 cities around the world, Jefferies provides clients with capital markets and financial advisory services, institutional brokerage, securities research and asset management. Jefferies & Company, Inc. is the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF: www.jefferies.com). For more information about these ETFs, please visit www.jamfunds.com.
About Thomson Reuters
Thomson Reuters is the world's leading source of intelligent information for businesses and professionals. We combine industry expertise with innovative technology to deliver critical information to leading decision makers in the financial, legal, tax and accounting, healthcare and science and media markets, powered by the world's most trusted news organization. With headquarters in New York and major operations in London and Eagan, Minnesota, Thomson Reuters employs more than 50,000 people and operates in over 100 countries. Thomson Reuters shares are listed on the Toronto Stock Exchange and New York Stock Exchange. For more information, go to www.thomsonreuters.com.
Diversification does not eliminate the risk of experiencing investment losses.
Investors should consider the following risk factors and special considerations associated with investing in the ETFs, which may cause you to lose money. The ETFs are considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified ETF. As a result, changes in the market value of a single investment could cause greater fluctuations in share price than would occur in a diversified ETF. A principal risk of investing in the ETFs is equity risk, which is the risk that the value of the securities held by the ETFs will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities held by the ETFs participate or factors relating to specific companies in which the ETFs invest. The ETFs' investments in non-U.S. issuers involve unique risks compared to investing in securities of U.S. issuers, including, among others, greater market volatility than U.S. securities and less complete financial information than for U.S. issuers. In addition, adverse political, economic or social developments could undermine the value of ETFs' investments or prevent the ETFs from realizing the full value of their investments. The ETFs are new and have a limited operating history. The CRB-EQ Indices measure the performance of equity securities of companies engaged in the production and distribution of commodities and commodity-related products. The CRB-EQ Indices do not measure the performance of direct investment in the underlying commodities and, therefore, may not move in the same direction and to the same extent as the underlying commodities. See the section "Additional Risks" in the prospectus for additional risk factors.
S-Network Global Indexes, LLC is the Index Provider. The Index Provider is not affiliated with the ETF Trust, the Investment Adviser, the Sub-Adviser or the Distributor. The Index Provider is the designer of the construction and methodology for each underlying index and owns the service mark or trademark "In-the-Ground." "Thomson," "Thomson Reuters," "Reuters" and "CRB" are service marks or trademarks of Reuters America LLC, a Thomson Reuters company, or its affiliates ("Thomson Reuters"). "Jefferies" is a service mark or trademark of Jefferies Financial Products, LLC or its affiliates ("Jefferies"). Neither Thomson Reuters nor Jefferies is responsible for the descriptions of the underlying indices or ETFs that appear herein. Thomson Reuters and Jefferies are not affiliated with the Index Provider, the Trust, the Investment Adviser, the Sub-Adviser or the Distributor.
Shares are not individually redeemable and owners of the Shares may acquire those shares from the ETFs and tender those shares for redemption to the ETFs in Creation Units only, typically consisting of aggregations of 50,000 shares.
An investor should consider the ETFs' investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other information about the ETFs. For more complete information about the ETFs or to obtain a prospectus, call 1-866-675-2639 or 1-877-526-9298 or visit www.alpsetfs.com. Please read the prospectus carefully before investing.