In response to significant investor demand, Source has launched the EURO STOXX Optimised Banks ETF. The New fund will complement the firm’s 18 existing European optimised sector ETFs, which have already gathered over EUR1.6bn in assets and set new standards in liquidity, with over EUR120bn in turnover since their launch in June 2009.
The performance dynamics and macro environment surrounding the European banks sector have driven significant price performance and trading activity over the past year. Source has seen this activity reflected in the turnover of its existing STOXX Europe 600 Source Bank ETF, which has traded on average over EUR2bn per month since May 2010. However, the relative performance of Eurozone banks, especially Spain, versus other European banks has highlighted a need in the market for a liquid, tradable ETF on the Eurozone banks sector.
The new EURO STOXX Optimised Banks Source ETF provides exposure to the Eurozone banks sector by tracking the EURO STOXX Optimised Banks Total Return index (net). Derived from the EURO STOXX index, the index is comprised of 24 euro denominated constituents. (As a point of reference, the EURO STOXX index is comprised of 312 constituents representing companies in 12 Eurozone countries. In comparison, the STOXX Europe 600 index is comprised of 600 constituents covering 18 countries of the European region). Similar to the existing European optimised Source sector ETFs, the benchmark has been optimised to reduce exposure to illiquid stocks thereby creating a more representative and investable sector benchmark.
Ted Hood CEO of Source says: “We are delighted to add the EURO STOXX® Optimised Banks Source ETF to our range of European sector ETFs. We have seen a significant increase in demand for Eurozone banks sector exposure. The EURO STOXX Optimised Banks Source ETF will provide investors with an efficient and flexible tool to express their view on the sector, while offering improved liquidity through a proven optimisation methodology.”
The new ETF has 0.30% annual management fee and will begin trading in EUR on the Deutsche Börse from the 14th April 2011.
