This tracker follows the FTSE Eurotop 100 index, a leading pan-European index that is made up of Europe's 100 biggest securities. The issuer is Barclays Global Investors (BGI), a major player in the trackers market, which is introducing trackers as part of its iShares series. So far, it has launched nine trackers on Euronext, eight on Bloomberg European sector indices and one on the FTSE Euro 100 index. BGI will restrict its annual all-inclusive management fee to 0.5% of the assets under management for the iShares FTSE Eurotop 100 tracker.
Trackers are index funds that can be traded on the market in the same way as shares and are also known as exchange-traded funds (ETFs). Designed to replicate the performance of an index or basket of securities, they are simple, fast and cost-effective, enabling investors to benefit from the results of an entire business sector, national economy or region by purchasing a single security. Trackers can be traded throughout the trading day and can be bought and sold through brokers in the same way as shares. Trackers also pay dividends.
NextTrack was launched on 9 January 2001 as Euronext's designated equity product segment for trackers. In September it became the leading market place for trackers in Europe with a market share of 46%. The NextTrack segment helps investors identify these new products more easily and enables them to choose their preferred index or portfolio type from the range of trackers on offer. The new iShares FTSE Eurotop 100 is the 33rd tracker to be issued in the NextTrack segment.
