Bringing you live news and features since 2006 

London Stock Exchange

iShares launches the EURO STOXX 50 ex-Financials UCITS ETF

RELATED TOPICS​

iShares has launched the iShares EURO STOXX 50 ex-Financials UCITS ETF, Europe’s first exchange-traded fund with an international security structure. 

The fund, listed on the London Stock Exchange, will offer investors access to Eurozone equities whilst stripping out financial exposures, for example banks and insurance companies.
 
Investor appetite for Europe has surged in recent months and this new fund allows investors access to a broad, but potentially less volatile, Eurozone equity exposure. This can often form a core building block in portfolios while supporting investors who choose financials-focused funds, or single stock exposures, to complement their asset allocation.
 
This fund will be Europe’s first ETF to come to market with an international security structure. The launch is the result of a partnership between BlackRock and Euroclear Bank, first announced in June 2013.
 
Previously, when an ETF has listed and traded on multiple national exchanges in Europe, it settled in the national central securities depository (CSD) of the exchange where that trade was executed. With an international security structure however, the ETF trade can settle in a single pan-European location making settlement more efficient. This single international settlement venue will greatly improve and simplify the post-trade process, supporting efforts to increase liquidity and reduce costs, ultimately resulting in the growth of the European ETF market.
 
The iShares EURO STOXX 50 ex-Financials UCITS ETF is a physically replicating fund which invests in blue chip stocks from 12 Eurozone countries, while excluding companies from the financial sector, potentially providing investors with a less volatile exposure to Eurozone equities. The fund has a total expense ratio of 20 basis points.
 
Tom Fekete, head of product development for iShares EMEA, says: “We are excited to launch this fund using the new international security structure. Eurozone financial stocks are likely to exhibit volatility in 2014 and this ETF provides a building block for investors to express their views, by either side-stepping the sector or specifically targeting it by adding other financials-focused funds or single stocks to their portfolios.”
 
Stephan Pouyat, global head of international markets, Euroclear, says: “We’re hugely proud of the results of our work with BlackRock this year. The realisation of this new international ETF asset class marks another step in the development and maturation of the European ETF market. Simplifying the issuance process and providing uniform settlement practices regardless of trading venue will make it easier for investors to trade these ETFs. This will ultimately improve liquidity in the market, which should have a positive effect on processing costs for the end investor.”

Latest News

Saving and investing app, Moneybox, has doubled the number of ETFs available on the platform, in the light of ‘growing..
Global X ETFs has announced the appointment of Ryan O'Connor as its Chief Executive Officer effective as of April 8, 2024. ..
Value-driven structured credit investing firm, Angel Oak Capital Advisors, LLC, has announced the completed conversions of two of its mutual..
Confidence in the continuing strength of bitcoin and Ethereum is driving wider interest in altcoins and other digital assets, according..

Related Articles

Graham MacKenzie, Toronto Stock Exchange
The evolution of ETFs has been a multi-decade experience for Toronto Stock Exchange says Graham MacKenzie, managing director, Exchange Traded...
Frank Koudelka, State Street Global Services
ETF data provider and ETF Express data partner, Trackinsight, has published its Global ETF Survey 2024 Report: ‘50+ Charts on...
Cryptocurrencies
Matteo Greco, Research Analyst at Fineqia International writes that bitcoin (BTC) ended the week at approximately USD52,150, showing a notable...
US Distribution Awards trophies
The winners of the first US ETF Distribution Awards at the Exchange conference, hosted by ETF Express and sponsored by...
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