A closer look: New commodity, stock, and diversified ETPs

IncomeShares added 15 new exchange-traded products to the London Stock Exchange last week. They cover commodities, single stocks, and diversified ETPs. This article explains what's in each group.

Note: We use USD tickers in the copy below. Each ETP has a GBP equivalent listed in the tables.

Five new commodity options income ETPs

The new commodity ETPs cover gold mining, silver mining, copper mining, oil, and uranium.

Commodity prices tend to be driven by inflation and supply factors. Those drivers can be unrelated to what's moving stocks or bonds. Commodities also don't pay income on their own, but options strategies can potentially turn that exposure into yield.

These ETPs use a cash-secured put plus equity strategy. They hold roughly 25% in the underlying asset(s) for exposure. The rest sells put options on the underlying for income potential. It's a different strategy to our existing Gold+ Yield (GLDI) and Silver+ Yield (SLVY) ETPs, which run covered calls on ETFs that track gold and silver.

GLMY and SLMY may complement those products. They sell puts on mining stocks, while GLDI and SLVY sell calls on ETFs that track gold and silver.

GLMY, SLMY, and CPRY hold mining stocks through ETFs. Mining stocks can be more volatile than the metals themselves. Their share prices also depend on operating leverage and other company-specific factors.

WTIY and URNY hold oil and uranium exposure through ETFs. They cover the commodities themselves rather than the companies that produce them.

Seven new single-stock options income ETPs

The new single-stock ETPs add seven names to the IncomeShares equity range. They span financials, tech, media, and healthcare.

Each ETP uses the same cash-secured put plus equity strategy as the commodity products. They hold roughly 25% in the stock for exposure. The rest sells put options on the stock for income potential.

Three new diversified ETPs

The new diversified ETPs include a multi-asset growth basket, a blockchain basket, and a Eurostoxx 50 ETP. Each one bundles broader exposure into a single product.

Our Multi-Asset Growth ETP aims to pay monthly income, with price exposure across three asset classes. It holds 75% in stocks, 10% in long-dated US Treasuries, and 15% in commodities. It's a more growth-focused alternative to the 60/30/10 Multi-Asset Balanced ETP.

BLCY holds a basket of companies linked to blockchain and digital asset infrastructure. ESXY holds Eurostoxx 50 exposure, with options strategies for income potential.

Where to trade them

All 15 new ETPs trade on the London Stock Exchange in USD and GBP. Cross-listings on Xetra and Euronext Amsterdam are planned soon. The ETPs may also be eligible to hold in a UK ISA or SIPP, subject to broker coverage.

The April launch follows the 20 IncomeShares ETPs we listed in March across AI, semiconductor, and crypto themes.

Three things to remember

• The 15 new ETPs sell options on their underlying exposures. They aim to generate monthly income while investors keep exposure to the general direction of the underlying assets.

• The launch broadens the IncomeShares range across commodities, single stocks, and diversified ETPs.

• The ETPs trade on the LSE in USD and GBP. Cross-listings on Xetra and Euronext Amsterdam are planned soon.