Lyxor has launched the Lyxor S&P 500 Banks UCITS ETF on the London Stock Exchange and the Borsa Italia.
It is the first ETF on the European market that aims to track the rise and fall of the dollar-denominated S&P 500 Capped 35/20 Banks and Diversified Financials Select Index (NTR).
The S&P 500 Capped 35/20 Banks and Diversified Financials Select Index (NTR) provides access to the banking sector in the United States, including investment banks, regional banks, brokerage firms, credit organizations, asset management companies and custodian banks. The stocks are exclusively part of the S&P 500 index. Components of the index are weighted according to market capitalisation with limits to prevent over exposure to any given stock.
Adam Laird, Head of ETF Strategy, says: “There’s a lot of opportunity in American banks. Rising rates give the potential for higher margins – and the sector could get a shot in the arm by the US administration’s planned deregulation campaign.
“We launched this ETF to specialise in banks and investment, it excludes some of the less cyclical financial stocks held in other funds. This will be a good complement to our existing range of bank-focused ETFs.”