Highlights of new ETF offering
- 0% Total Expense Ratio
- ETF Securities broadens its asset class coverage to equities
- 13 new ETFs provide access to equity based sectors not available through ETCs
- First complete platform of commodity sector equity ETFs providing access to Global and European themes including Alternative Energy, Nuclear, Water, Shipping, Coal, Steel, Gold Mining, Basic Resources, Utilities, Oil & Gas and Agri Business
- First European ETF issuer to offer US equity ETFs on both market-leading Russell 1000 and 2000 US equity indexes
ETF Securities, the global pioneer and market leader in Exchange Traded Commodities (ETCs) will launch it's first ever platform of equity index tracking Exchange Traded Funds (ETF) on the London Stock Exchange (LSE) a 0% Total Expense Ratio (TER) until 31 January 2009. The ETF offering provides access to some of the most important investment themes in world financial markets. The new ETFs will complement ETF Securities' existing suite of ETCs which provide investors with direct long, short and leveraged exposure to world commodity markets.
In conjunction with the launch of our new platform, all ETFs offered by ETF Securities will have a 0% TER until the 31st January 2009. We hope that this launch offer will be well received by the market and make what is already a very exciting suite of ETFs, even more attractive to investors.
ETF Securities enters the European equity ETF market on the back of strong client demand for investment themes that have not been possible to implement using ETCs. Industry sectors such as Water, Coal, Steel, Shipping, Alternative Energy and Nuclear are currently not available through ETCs due to the difficulties in getting exposure to the underlying asset.
The new ETF offering is extremely complementary to the existing ETC offering. Investors understand that under different market conditions, there are times when commodities will outperform comparable commodity companies and times when commodity companies will outperform the relevant commodities. Together, the platform of ETCs and ETFs will enable investors to take advantage of a whole new range of investment opportunities.
ETF Securities is proud to be the first European ETF Issuer to offer investors ETFs based on the two leading US equity benchmarks: the U.S. large-cap Russell 1000 Index and U.S. small-cap Russell 2000 Index. These world-class benchmarks are the most comprehensive and unbiased large-cap and small-cap barometers of the U.S. equity market. In addition, ETF Securities has also licensed four commodity sector indices tracking companies from the global shipping, coal, steel and gold industries.
DAXglobal® Alternative Energy Index replicates the performance of the fifteen largest and most liquid companies worldwide in the alternative energy segment. Three companies have been selected from each of the five energy sub-segments; wind, solar, natural gas, ethanol and a cluster of geo-thermal, hydro energy and batteries. These five segments are equally weighted.
The WNA Nuclear Energy IndexSM is an equity index designed to serve as an equity benchmark for companies, which are materially engaged in the global nuclear energy industry. The WNAI is designed to assure exposure across the various business segments that comprise the Global Nuclear Energy Industry. These segments are: Primary Construction, Reactors, Nuclear Power Generation, Technology, Equipment, Service Providers, and Fuels. The WNAI is the official index of the World Nuclear Association.
The Janney Global Water IndexSM serves as an equity benchmark for companies which are materially engaged in the water utilities and water technology industries. Both industries are equally weighted 50/50.
The S-Network ITG Agriculture IndexSM Index is an equity index comprising companies that are principally engaged in the "Primary" agriculture industry worldwide. The Index is designed to provide exposure across the various business segments that together comprise the Global Agriculture Industry, including: Seeds, Chemicals and Fertilizers, Equipment, Commodity Agricultural Products, and Livestock.
The Dow Jones STOXX 600 Basic Resources, Dow Jones STOXX 600 Oil & Gas and Dow Jones STOXX 600 Utilities indexes are part of the Dow Jones STOXX 600 Supersector Indexes. The index universe includes all companies in the Dow Jones STOXX 600 Index and are classified according to their primary source of revenue. The indexes aim to represent the largest European companies in the respective sector.
Trading in the new ETFs on the LSE commenced on 6th November.
The 13 new equity ETFs are:
ETFS |
Base Currency |
LSE Code (base currency) |
LSE Code (GBp) | Sector | UK Dist Status |
ETFS WNA Global Nuclear Energy | USD | NUKE | NUKP | Global | Yes |
ETFS Janney Global Water | USD | WATE | WATP | Global | Yes |
ETFS S-Net ITG Global Agri Business | USD | AGRI | AGRP | Global | Yes |
ETFS DAXglobal Alternative Energy | EUR | ALTE | ALTP | Global | Yes |
ETFS Russell Global Coal | USD | COAL | COAP | Global | Yes |
ETFS Russell Global Gold | USD | AUCO | AUCP | Global | Yes |
ETFS Russell Global Steel Large Cap |
USD | STEE | STEP | Global | Yes |
ETFS Russell Global Shipping Large Cap | USD | SHIP | SHPP | Global | Yes |
ETFS Russell 1000 | USD | RONE | RONP | USA | Yes |
ETFS Russell 2000 | USD | RTWO | RTWP | USA | Yes |
ETFS Dow Jones STOXX 600 Basic Resources | EUR | BASR | BASP | EURO | Yes |
ETFS Dow Jones STOXX 600 Oil & Gas |
EUR | OILG | OILS | EURO | Yes |
ETFS Dow Jones STOXX 600 Utilities | EUR | UTIL | UTIP | EURO | Yes |
ETF Securities' platform of 13 equity ETFs provides exposure to global and European themes such as Alternative Energy, Water, Agribusiness, Coal, Steel, Shipping and Nuclear Power. The ETFs have been listed on three major European stock exchanges in dedicated ETF trading segments. The ETFs are traded in three currencies (USD, Euros and Sterling).
ETF Securities also offers a platform of over 120 Exchange Traded Commodities (ETCs) The ETC platform consists of Physical, Classic, Forward, Short and Leveraged ETCs providing direct exposure to energy, agriculture, livestock, industrial metals and precious metals. Last week, ETF Securities also added Europe's first carbon ETC (ETFS Carbon) to its product suite providing access to the burgeoning carbon emissions trading market. The ETCs have been listed on five major European stock exchanges in dedicated ETC trading segments. The ETCs are traded in three currencies (USD, Euros and Sterling).
Commenting on launching another world first, Graham Tuckwell, Chairman of ETF Securities, said:
"ETF Securities is extremely proud to be able to offer this exciting platform of 13 new equity ETFs to European investors. This broadens the asset classes ETF Securities offers to include equities and commodities.
"The decision to launch equity ETFs on thematic sectors has come largely from our clients who have consistently asked ETF Securities to provide them with more investment opportunities, particularly themes or sectors they are currently unable to access through ETCs."
Commenting on the launch of the new ETFs, Pietro Poletto, Head of ETF and ETC Markets at London Stock Exchange Group , said:
"We are delighted to welcome ETF Securities' first range of Exchange Traded Funds to our markets, building on their expertise in Exchange Traded Commodities to provide investors with opportunities in important industrial and resource sectors. They are joining a market that has continued to expand rapidly, with new and innovative products, and increased levels of investor activity even against a backdrop of exceptionally volatile market conditions."