Source has launched an S&P 500 ETF, an exchange-traded fund which tracks the S&P 500 total return (net) index.
Source says that in the current market environment, demand for exposure to US equities market is high and concerns about the Euro continue.
The new fund gives investors access to the US equities market through important benchmarks.
The S&P 500 index is comprised of 500 companies with a market capitalisation greater than USD3.5bn and listed on the NYSE or one of the Nasdaq exchanges.
Currently, there is over USD100bn invested in S&P 500 ETFs globally, most of it concentrated in US listed products. The SPDR S&P 500 and iShares S&P 500 ETFs, listed in the US, together account for USD98bn, representing 13 per cent of total US ETF market.
Due to restrictions on the holding or trading of US listed funds, many European investors have until recently been limited to a single European domiciled ETF providing exposure to the S&P 500 index.
The S&P 500 Source ETF is Ucits III compliant and is domiciled in Ireland. It is listed on the London Stock Exchange and trades in USD.
Ted Hood, chief executive of Source, says: “We are delighted to add the S&P 500 Source ETF to our range of products providing exposure to the US equity market. The S&P 500 index is an important benchmark and a good compliment to our growing suite of US exposure which includes the S&P US Select Sectors, MSCI USA and the Russell 2000.”
The fund has a 0.20 per cent management fee.
