Lyxor is to replace the indices it uses as the basis for its global real estate exchange-traded funds to the FTSE EPRA/NAREIT Developed Global Real Estate indices.
Francois Millet, head of business development – indexing at Lyxor, says: "We have chosen to replace MSCI Real Estate Index with FTSE EPRA/NAREIT because of its high standards of investability and transparency. Further, FTSE EPRA/NAREIT indices are the most widely used global benchmarks for listed real estate and are endorsed by the leading real estate industry associations.”
These ETFs add to FTSE’s significant European ETF business, which already includes 94 FTSE index-linked ETFs. Globally, more than USD124bn of ETF assets are currently benchmarked to FTSE indices or scheduled to transition to FTSE indices in coming months.
Jonathan Horton, president FTSE North America, says: “This is an important benchmark switch for FTSE and we are delighted that Lyxor has chosen to adopt our benchmark and to build on our existing relationship. FTSE is a global leader in this index segment: our EPRA/NAREIT index series is the pre-eminent real estate benchmark across the world.”
Lyxor already offers a number of ETFs based on FTSE indices including FTSE 100, FTSE 250, FTSE MIB, FTSE RAFI, FTSE JSE and FTSE Kuwait. It also offers other real estate FTSE EPRA/NAREIT ETFs including US, Europe, Asia ex Japan and Developed Europe.