Bringing you live news and features since 2006 

Source launches MSCI emerging markets ETF


Source has launched the MSCI Emerging Markets ETF, tracking the MSCI Emerging Markets Total Return (net) index.

The ETF will provide consistent tracking of its underlying benchmark through Source’s multi-counterparty derivative approach.

The new product will achieve the performance of the index by entering into total return swaps, thereby providing better returns than are currently being delivered in these products in Europe.
In addition, it is listed on the London Stock Exchange and trades in USD, thereby minimising foreign exchange related tracking error.

Tracking error, particularly on emerging market products, has been a significant concern for investors. The tracking error on existing ETFs based on MSCI Emerging Markets index ranges from one per cent to 5.2 per cent. This is caused by optimisation strategies, operational costs, dividend treatment and foreign exchange impact.
Emerging market ETFs have gained increasing popularity since their launch in 2004 and particularly this past year. Over the last 15 months, there have been more than USD3.6bn of inflows in emerging markets ETFs in Europe, taking the total AUM to USD26bn as of end of March 2010.

The four ETFs based on the MSCI Emerging Markets index currently represent 43 per cent of total European emerging markets ETF AUM.
Ted Hood, Source chief executive, says: “Clients have been asking us to provide ETFs that offer consistent tracking to EM benchmarks and today we can offer that to MSCI EM, the most widely used broad benchmark in the market. Source continues to deliver best of breed products that tackle inefficiencies in the current markets.”

Latest News

ETF data providers ETFGI has reported that the ETFs industry in the United States gathered net inflows of USD8.17 billion..
Chimera Capital LLC, an Abu-Dhabi-based investment management firm, has announced that BHM Capital, a UAE-based financial services firm, has become..
Fidelity International has announced the launch of the Fidelity Global Government Bond Climate Aware UCITS ETF, expanding its climate-focused ETF..
ETFs in Europe gathered net inflows of USD8.61 billion during February, bringing year-to-date net inflows to USD27.94 billion, according to..

Related Articles

Off the Record Episode 1
ETF Express is pleased to announce the launch of Off the Record, a new podcast series, in partnership with Truss...
February ETF flow figures from iShares at BlackRock reveal that inflows into global ETPs were moderate for a fifth consecutive...
Noel Archard, AllianceBernstein
Noel Archard has been in position as the global head of ETFs at AllianceBernstein for just over a year and...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by