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Lyxor lists new emerging-market ETF range in London
by Robert St George on Sep 12, 2013 at 14:56
Several new Lyxor ETFs tracking emerging markets have made their debut today on the London Stock Exchange.
These will offer exposure to Taiwan, Korea, South Africa, Malaysia, Indonesia, Thailand, Turkey, as well as the regions Eastern Europe and Asia Pacific excluding Japan. The funds will be available denominated in sterling or US dollars.
The ETFs are all synthetic, rather than physically backed, with Lyxor arguing that this will ‘typically offer lower costs and greater efficiency’. Their total expense ratios range from 0.45% for Thailand to 0.65% for Taiwan, Korea and South Africa, Malaysia and Turkey. For comparison, the physically backed iShares MSCI Korea ETF has a total expense ratio of 0.74%.
‘The UK is an important region within the European ETF market and a key strategic priority for Lyxor,’ said Arnaud Llinas, global head of ETFs and indexing at the firm.
‘We continue to work to provide innovative solutions and believe that the launch of these new products, our recent recruitment efforts, and the strengthening of our internal structures demonstrate our commitment to UK investors and the London Stock Exchange, which is now the preferred venue for European ETF trading.’
Lyxor, a subsidiary of Société Générale founded in 1998, is Europe’s third largest ETF provider, with more than £25 billion of assets under management.