Deutsche Börse: ETFs Launched On Sector Indices Of STOXX Family - First Sector Index Funds In XTF Deutsche Börse Provides Cash Market, Derivatives And ETFs From A Single Source

Deutsche Börse AG is further expanding its XTF market segment for exchange-traded index funds: Starting Friday, four new index funds will be traded in XTF on sector indices of the Dow Jones Euro STOXX and Dow Jones STOXX 600, respectively. The index-tracker funds cover the sectors Banks, Telecommunications, Technology and Healthcare, on which Eurex futures are also traded. Deutsche Börse AG thus offers an integrated overall package for the products on sector indices in the STOXX family, from trading in nearly all individual securities on Xetra to trading in the index fund products on XTF and corresponding futures, from a single source. Investors will now be able to trade 16 index funds and 11 actively managed equity funds through XTF, quickly and easily like stocks.

The products are issued by Indexchange. The new index funds give investors the opportunity to make a diversified investment in European equities from the above-mentioned sectors. The Euro STOXX sector indices cover securities from Euroland, the STOXX 600 products are pan-European in composition. Investors can thus participate in the performance of established sector indices in the STOXX family. The XTF segment, which Deutsche Börse launched in April 2000 as the first exchange in Europe with a segment for exchange-traded funds, is showing very strong growth. 14 new products have already been added since the beginning of the year, average daily turnover was up to almost 90 million euros in March.

There are no loads for the purchase of fund shares through the stock exchange; all the investor has to pay are the usual transaction costs for the purchase and sale of securities. Investors can buy the shares through any bank. Roughly 98 percent of the turnover in fund products in Germany is posted through Xetra. This means that all of the main trading parameters from equities trading are also available in XTF. These include continuous trading, auctions, a minimum lot of one fund share as well as Designated Sponsors who provide for liquidity.