Lyxor rolls out Stoxx Europe 600 ETF with euro hedging

Apr 25th, 2017 | By | Category: Equities

Lyxor has launched a new ETF, offering currency-hedged exposure to the Stoxx Europe 600 Index, on Deutsche Börse’s Xetra and Frankfurt exchanges.

Lyxor rolls out Stoxx Europe 600 ETF with euro hedging

The Lyxor Stoxx Europe 600 UCITS ETF Monthly Hedged D-EUR (STXH) minimises the effect of fluctuations between index component currencies and the euro.

The Lyxor Stoxx Europe 600 UCITS ETF Monthly Hedged D-EUR (STXH) tracks the most liquid, large, mid and small-cap companies in European industrialised countries. The underlying index is designed to act as an investable benchmark for the entire European developed region. Constituents are weighted by free-float market capitalization.

The UK represents the largest country exposure within the index, accounting for roughly a quarter of the total index capitalization. France, Switzerland and Germany follow with approximately a 15% allocation each. Financials is the largest sector exposure (20.7%), followed by industrials (13.6%), consumer staples (13.5%), health care (13.1%) and consumer discretionary (11.6%). (Data as of 25 April 2017)

A monthly currency hedge within the ETF minimises the effect of fluctuations between index component currencies and the euro.

The fund has a total expense ratio of 0.40%. Lyxor offers unhedged exposure to the same index through the Lyxor Stoxx Europe 600 UCITS ETF (MEUD) which trades on the London Stock Exchange in GBP or on the Euronext Paris and Borsa Italiana in EUR. It has approximately £95 miilion in assets under management and costs just 0.15% per annum. The fund’s GBP and EUR share classes are up 3.7% and 5.6% respectively year-to-date.

Investors may also get Stoxx Europe 600 exposure through the iShares Stoxx Europe 600 UCITS ETF (Xetra: EXSA) or the Db X-trackers Stoxx Europe 600 UCITS ETF (Xetra: XSX6). While these ETFs are significantly larger, boasting €5.8 billion and €1.3bn in assets respectively, they are slightly more expensive with each having a price tag of 0.20% per annum.

Tags: , , , , , , , ,

Leave a Comment



More in Equities
UBS lists two currency-hedged MSCI ACWI SRI ETFs on LSE
UBS lists two currency-hedged MSCI ACWI SRI ETFs on LSE

UBS Asset Management has expanded its socially responsible ETF suite on the London Stock Exchange with two new listings offering GBP-...

SSGA launches three ‘innovative industry’ ETFs
SSGA partners with Kensho on three ‘new economy’ thematic ETFs on NYSE Arca

State Street Global Advisors (SSGA) has teamed up with Kensho Technologies for the launch of three ETFs on NYSE Arca designed to...

Close