Source is listing the Source EURO STOXX Optimised Banks UCITS exchange traded fund (ETF) on the London Stock Exchange (LSE).
The fund provides exposure to banks within the Eurozone and is optimised to reduce exposure to illiquid stocks. This optimisation produces a more representative and tradable sector benchmark.
“The results of the European Central Bank’s Asset Quality Review have shed light on the health of the region’s banks as well as the broader European economy,” says Michael John Lytle, chief development officer. “For investors who want to increase their exposure to Eurozone banks, this ETF provides the opportunity to gain access quickly and efficiently. It is the second banking sector ETF that Source has listed on the LSE, following the Source STOXX Europe 600 Optimised Banks UCITS ETF, which differs because it includes UK banks. Both ETFs trade throughout the day and the holdings and counterparty exposures are published daily on our website, providing total transparency."
The fund aims to provide the performance of the EURO STOXX Optimised Banks EUR Index (Net Return) through Source’s efficient and transparent swap-enhanced structure. Source’s approach of using multiple counterparties for the swap contracts aims to diversify and thereby reduce counterparty risks, while also minimising the ETF’s tracking error.