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WisdomTree terminates eight oil ETPs valued over €500m

After Shell cancels contract with US asset manager


Elena Johansson

WisdomTree has shut eight oil exchange-traded products (ETPs) with combined assets of about $550m (€504m), after brokers reassessed their potential risks, UK newspaper the Financial Times reported.

The impact of an oil price war and covid-19 led to extreme volatility and a historical negative oil price in April.

A Shell spokesperson told the FT that the oil company had ended its “commercial swap provision agreement” with WisdomTree.

Clients have been encouraged to sell the affected holdings before the products end trading on 10 June, the FT reported.

As of 21 May 2020, WisdomTree has $56.2bn in assets under management globally, with almost half of it in Europe ($26.2bn).

Its WTI tracker, called WisdomTree WTI Crude Oil, is the largest oil ETP sold in Europe, according to the FT.

It invests in futures contracts and returned -66.61% in Q1 2020.