Credit Suisse launched two new geared exchange traded notes that allow traders to take more aggressive positions on Brent crude oil price movements.
On Friday, Credit Suisse rolled out the Credit Suisse AxelaTrader 3x Long Brent Crude Oil ETN (NYSEArca: UBRT) and Credit Suisse AxelaTrader 3x Inverse Brent Crude Oil ETN (NYSEArca: DBRT). UBRT has a 1.35% expense ratio and DBRT has a 1.65% expense ratio.
The two new geared ETNs are differentiated from the rest by their focus on the Brent crude oil market as opposed to other popular leveraged exchange traded funds and ETNs that track West Texas Intermediate crude oil prices.
Brent crude, which is pulled out from wells in the North Sea, serves as a benchmark price for the majority of the world’s crude oil market. On the other hand, WTI is pumped out of the U.S. and is a more widely traded contract domestically.
“Brent crude oil is used as a benchmark to price roughly two-thirds of the crude oil supply traded in the world, but investors seeking exposure to Brent crude oil through an exchange-traded security have very limited options,” Paul Somma, head of Exchange Traded Notes at Credit Suisse, said in a note. “These ETNs provide a way for sophisticated investors to implement innovative short-term trading and hedging strategies based on the ETNs’ leveraged exposure to Brent crude oil futures contracts.”