Lyxor has listed three exchange-traded funds on NYSE Euronext Paris, providing simplified exposure to emerging markets excluding the BRIC countries, emerging markets OECD member countries, and Mexico.
Lyxor UCITS ETF MSCI EM Beyond BRIC allows investors to access stocks from smaller scale and faster growing emerging countries, excluding the BRIC countries (Brazil, Russia, India and China) as they typically account for a significant percentage of emerging market indices but face specific issues such as slower growth, higher inflation or excessive reliance on the energy sector.
The exclusion of BRIC countries allows the fund to better capture returns of markets that will potentially constitute relays of growth in emerging markets for the future. The MSCI EM Beyond BRIC index has delivered superior returns to the traditional MSCI Emerging Markets over the last three years, at a lower volatility level, thus significantly improving their risk-return ratio of an emerging markets investment.
Lyxor UCITS ETF MSCI Select OECD Emerging Market GDP is the first ETF to track this index, which also excludes BRIC countries, and additionally concentrates on countries belonging to OECD (Organisation for Economic Co-operation and Development) only. Many European institutional investors face regulatory restrictions on investment outside of OECD, and this ETF meets these restrictive requirements by offering simplified access to emerging countries that are OECD members.
Lyxor UCITS ETF MSCI Mexico replicates the performance of Mexico’s large and mid cap stocks, free-float adjusted. The index consists of 25 stocks and covers approximately 85 per cent of the market. Mexico currently offers significant growth potential as its cycle is highly correlated with the US.