Commerzbank’s ComStage unveils two innovative new ETFs

Oct 10th, 2013 | By | Category: Equities

ComStage, the exchange-traded funds brand of German banking giant Commerzbank, has launched two innovative new exchange-traded funds on the Deutsche Börse.

Commerzbank’s ComStage unveils two innovative new ETFs

Commerzbank has unveiled two innovative new ETFs.

One of the funds is linked to the FTSE China A 50 Index, while the other is linked to the MSCI World with EM Exposure.

The ComStage FTSE China A50 UCITS ETF (C024) becomes the first ETF in Europe to track the FTSE China A 50 Index. This index is composed of the largest 50 A-share companies by market capitalisation listed on the Shanghai and Shenzhen Stock Exchanges. It has a total expense ratio (TER) of 0.50%.

Thomas Meyer zu Drewer, Managing Director of ComStage, said: “We are pleased to announce the launch of our new ComStage FTSE China A50 UCITS ETF, which is linked to the FTSE China A 50 index. We have seen increasing interest from investors and our new ETF will provide European investors with easy access to the Chinese market, by tracking the performance of FTSE’s highly transparent and representative benchmark index”.

Sudir Raju, Managing Director ETP Relationships at FTSE Group, added: “We are delighted that Commerzbank has again chosen to create ETFs based on FTSE indices. FTSE has a long and established presence in China with some of the world’s largest ETFs tracking FTSE benchmarks. The FTSE China A 50 index tracks the performance of the largest 50 A share companies and reflects the growing demand from investors for access to this fast and developing economy”.

Meanwhile, the ComStage ETF MSCI World with EM Exposure Net UCITS ETF (E130) becomes the first ETF globally to track the MSCI World with EM Exposure Index. The fund offers investors an opportunity to gain exposure to emerging markets while benefiting from the enhanced liquidity and superior governance of developed market stocks. It has a TER of 0.40%.

Launched in March 2012, the underlying index is part of MSCI’s series of Economic Exposure Indices which track the performance of publicly listed companies with revenue exposures to target regions and countries. In this case, the index tracks the performance of the 300 companies in the developed market MSCI World Index which show the greatest economic commitment in emerging market countries. The individual companies are weighted by the share of their total revenue generated in emerging markets.

The index concept is grounded in common sense. Many companies today conduct business globally and are exposed to the economies of multiple countries and regions. Often, the country of domicile or listing location is of little relevance.

Talking earlier this year, Baer Pettit, Managing Director and Head of the MSCI Index Business, said: “Globalisation and the rapid integration of markets have challenged us to explore alternative approaches to categorising the global equity universe. Economic exposure brings a new dimension to the construction of global equity indices.”

Both funds are fully UCITS compliant and have been registered in Germany, Austria and Luxembourg.

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