Lyxor Research has developed an “ETF Efficiency Indicator”, which is designed to help investors choose the most suitable exchange-traded fund for their portfolio by comparing and evaluating ETFs.
The indicator demonstrates that ETFs tracking the same index do not necessarily produce the same performance outcome.
Lyxor believes that investors should have a clear understanding of the “true performance” (the Efficiency) of the ETFs they invest in. As a result, Lyxor’s ETF Efficiency Indicator combines the three most commonly used criteria to evaluate ETFs’ efficiency: performance relative to the benchmark; tracking error volatility; and liquidity spread.
According to this indicator, seven Lyxor ETFs, which are among the most traded in the European market, are ranked number one in terms of efficiency over a one year period. Lyxor ETFs tracking the MSCI Emerging Markets, MSCI World, MSCI USA, MSCI Europe, CAC 40, FTSE 100 and FTSE MIB indices therefore represent the most efficient way to gain exposure to these markets via an ETF.
Lyxor’s ETF Efficiency Indicator meets the increasingly sophisticated demands of investors in Europe’s ETF market. These rankings further demonstrate Lyxor’s ability to provide investors with outperformance and liquidity within a robust risk-controlled framework.