After 9 trackers and 12 listings in June, the EasyETF range has been further enhanced with 9 ETFs and 13 listings on NYSE Euronext’s European markets. Covering the major topical themes, they provide the best access today for the challenges of tomorrow.
EasyETF continues to enhance its range by making available to investors investment themes that are appropriate for the development of new emerging regions, in Africa or Asia, and the major issues of concern today (such as nuclear energy or water scarcity).
“The African continent’s economic growth has accelerated in recent years and continues to send positive signals. In 2004 Egypt introduced several reforms which led, amongst other things, to the inflow of foreign direct investment which went from US$500 million at the beginning of the 2000s to US$11.1 billion in 2007. Meanwhile, in 2004, South Africa introduced a programme to modernise the economy and combat unemployment and poverty. In 2007, the country’s GDP enjoyed sustained growth of 4.9%”, explains Danièle Tohmé-Adet, co-manager of the EasyETF range at BNP Paribas Asset Management.
EasyETF DJ Egypt, the world’s first Egyptian ETF, replicates the Dow Jones CASE Titans Egypt 20 index, constructed in partnership with the Cairo and Alexandria stock exchanges. At the crossroads between Africa, Europe and the Middle East, Egypt attracts an increasing amount of foreign capital. The IMF expects Egypt’s GDP to grow by 7.3% in 2008 as a result of major reforms implemented by the government.
EasyETF FTSE South Africa offers access to one of the most sophisticated emerging market economies. An important producer of precious metals, such as gold or platinum, South Africa boasts a number of extremely prosperous national companies and firms that are highly competitive in the international markets. Firms in the mining and precious metals sector feature strongly in the index and have benefited from the appreciation of commodities.
After the BRIC countries, 11 countries exhibit strong economic and demographic growth potential: the “Next 11”. Their estimated growth rate for 2008 is 7.4% vs. 2.4% for the developed economies.* After the EasyETF S-Box BNP Paribas Next 11 Emerging global tracker, three new EasyETF countries have been added to the range in this segment for a specific tactical allocation: Egypt (mentioned previously) but also Turkey and South Korea.
EasyETF DJ Turkey Titans 20 is a bet on one of the largest emerging countries. Turkey’s location makes it strategically important and, despite a recent slowdown in foreign investment, its economy remains sound, with inflation under control and robust economic growth.
EasyETF DJ South Korea Titans 30: an opportunity to gain access to Asia’s third largest economic power, after China and Japan. Korea’s public finances are currently in a healthy state and there is substantial investment in R&D. The country also shows positive signs in terms of the liberalisation of the economy.
EasyETF also offers a series of trackers to capitalise on Asia’s dynamism.
EasyETF FTSE Xinhua China 25, which provides access to the world’s fourth largest economic power: China. It is one of the few markets in the world which boasted double-digit GDP growth in H2 2007, thanks to an economy that is still underpinned by investment, exports and the manufacturing industry. The index comprises the 25 most important and most liquid Chinese companies listed on the Hong-Kong stock exchange.
EasyETF TSEC Taiwan reproduces the TSEC Taiwan 50 index, which comprises the shares of the 50 largest companies on the Taiwan stock exchange. These companies alone account for 70% of this market. They are currently benefiting from world growth, since Taiwan has become one of the main manufacturers of high-tech products and is highly competitive.
EasyETF DJ Stoxx Asia / Pacific ex. Japan is an instrument for broad diversification and offers considerable competitiveness. It provides exposure to developed countries in the Asia/Pacific region: Australia, New Zealand, Singapore, Hong Kong. In addition to the promise of substantial growth, these countries boast solid exports and buoyant domestic demand. The index replicated here excludes Japanese stocks in the DJ Stoxx Asia/Pacific 600 and provides simple and optimum exposure to Asia/Pacific without investment in Japan.
“Soaring oil prices, on the one hand, and strong growth in the global population, on the other hand, provide ample motivation to look for solutions to deal with these issues. Hence the creation of an EasyETF tracker covering nuclear energy and another for water treatment, two sectors with strong growth potential”, says Marie-Pierre Ravoteur, co-manager of the EasyETF range at AXA Investment Managers (AXA IM).
EasyETF S-Box BNP Paribas Global Nuclear reflects the increasingly important demand for energy with low CO2 emissions. That said, nuclear energy is definitely one of the major issues of the 21st century. “We have devised a Global Nuclear index by developing a systematic approach for the selection of companies aimed at maximising the correlation to this theme. We therefore offer access to companies that are active in nuclear-based electricity production, uranium production and the construction of nuclear power stations etc.”, states Guillaume Dolisi, index structuring – Corporate & Investment Banking (CIB).
- EasyETF S-Box BNP Paribas Global Water enables investors to capitalise on the growth potential in the water sector – another fundamental issue of tomorrow, in terms of both available resources and the supply of drinking water.
This ETF invests in companies that are active in water treatment and distribution or in water-related infrastructure and which, therefore, offer strong growth potential.
Pedro Fernandes, Head of ETFs for NYSE Euronext’s European markets concludes: “We consider the strategy of enhancing the EasyETF range to be very promising since it corresponds to a rationale for development in accordance with the key medium/long-term themes. Moreover, EasyETF again uses NYSE Euronext’s USD trading service, which makes it possible to trade, in dollars, ETFs that are based on indices calculated and exposed in this currency while avoiding exchange rate risk. With this listing, Next Track, the Euronext segment dedicated to ETFs, now has 344 products, thus confirming its position as the European leader for the number of listed ETFs”.
* Source: IMF, World Economic Outlook, October 2007