The WisdomTree Bloomberg Brent Crude Oil (BRND) is an exchange-traded commodity product managed by WisdomTree. On the London Stock Exchange, BRND trades in U.S. dollars.

BRND is structured as an Exchange Traded Commodity (ETC), rather than a traditional ETF. It obtains synthetic exposure to Brent crude oil through a fully collateralized swap, without requiring the product to hold or store physical barrels of oil. The structure is UCITS eligible, with collateral used to mitigate counterparty exposure associated with the swap.

The Bloomberg Brent Crude Subindex tracks Brent crude oil futures and reflects both changes in futures prices and the impact of rolling contracts over time. The ETC's total return exposure also incorporates interest income on the collateralized amount, adjusted for the product's fees and costs.

Composition / Exposure Profile

Unlike an equity or bond ETF, BRND does not hold a conventional portfolio diversified across companies, sectors, or countries. Its primary economic exposure is linked to the Brent crude oil market through the Bloomberg Brent Crude Subindex.

Its exposure can be summarized as:

• Brent crude oil futures contracts.

• Returns associated with rolling futures contracts.

• Interest income on the collateralized amount.

• Collateral supporting the swap structure.

Because the benchmark uses futures contracts, BRND's performance is not determined solely by movements in the spot price of Brent crude oil. The shape of the futures curve can also affect returns through roll yield, which may be positive or negative depending on market conditions.

Performance can also reflect factors affecting the global oil market, including worldwide supply and demand, producer decisions, inventory levels, economic growth, geopolitical events, and changes in expectations for energy production and consumption.

Structure and Costs

BRND has the U.S. dollar as its base currency and trades in USD on the London Stock Exchange. The same product has additional listings and trading currencies, including BRNB in British pounds on the LSE and BRND in euros on Borsa Italiana.

The product is structured as an Ireland-domiciled ETC issued by WisdomTree Multi Asset Issuer PLC. Exposure to the benchmark is obtained through a fully collateralized swap, with Bank of New York Mellon serving as custodian of the collateral.

WisdomTree reports an annual management fee of 0.25%. The structure also involves an annual swap rate, representing an additional cost associated with obtaining synthetic exposure to the benchmark.

History and Evolution of the ETC

The WisdomTree Bloomberg Brent Crude Oil (BRND) was launched in 2015 to provide access to the performance of Brent crude oil futures through an exchange-traded product.

Since its launch, the ETC has maintained a strategy focused on tracking the Brent crude oil market through the Bloomberg Brent Crude Subindex, combining futures performance and roll returns with interest income associated with the collateralized amount.

Throughout its history, its performance has reflected global oil-market cycles and factors including changes in supply and demand, decisions by major oil-producing countries, economic growth, geopolitical developments, and shifts in the shape of the Brent futures curve.

Additional Information

WisdomTree Bloomberg Brent Crude Oil (Ireland) is an exchange-traded fund (ETF), with assets under management totaling $25.52 million.

Over the past 12 months, WisdomTree Bloomberg Brent Crude Oil recorded a return of 110.47%, with its price trading between $36.06 and $83.79 during the same period.

The ETF is traded under the ticker BRND.