Source lists Eurozone banks ETF on LSE

Oct 27th, 2014 | By | Category: Equities

Source, a leading European provider of exchange-traded funds, has listed a dedicated Eurozone banks ETF on the London Stock Exchange.

Source lists Eurozone banks ETF on LSE

The Source EURO STOXX Optimised Banks UCITS ETF (S7XP) provides targeted exposure to banks within the Eurozone.

The ETF, the Source EURO STOXX Optimised Banks UCITS ETF (S7XP), provides exposure to banks within the Eurozone and is optimised to reduce exposure to illiquid stocks.

The optimisation process applies various filters including a liquidity factor and a variable individual stock weight cap to produce a more representative and tradable sector benchmark.

Michael John Lytle, Chief Development Officer at Source, said: “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.”

He added: “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 an efficient and transparent swap-enhanced structure. The 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.

The fund has a management fee of 0.30% pa.

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