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 (ETF). Designed to replicate the performance of an index or basket of stocks, they are simple, fast and cost-effective. Investors buy a single security to benefit from the results of a whole business sector, national economy or region.
The NextTrack segment helps investors identify these new products more easily, and choose their preferred index or portfolio type from the range of Trackers on offer.
- LDRS, tracking the Dow Jones Euro Stoxx50 and Dow Jones Stoxx 50 (Paris and Amsterdam)
- Master Share CAC40, tracking the CAC40 Index (Paris)
- Master Share Euro Stoxx 50 (Paris)
- Tracker, tracking the AEX index (Amsterdam)
- IShares, tracking pan-European sector and regional indices (Amsterdam).
Once or twice a year, Tracker component companies pay a dividend that is either reinvested or distributed to unit holders.
Like other Euronext equity products, Trackers are traded through a central orderbook. Liquidity is guaranteed by at least two market makers per fund. For each fund, Euronext continuously calculates and disseminates an indicative net asset value per unit reflecting the index being tracked. The net asset value of funds is calculated daily and disseminated by Euronext.
Euronext is the first pan-European exchange, created by the merger of the Paris, Amsterdam and Brussels markets on September 22, 2000. It will use a single trading system (NSC) as of the second quarter of 2001, and move to a single clearing system (Clearing 21) in the second half of the year, with Euroclear handling clearing and settlement.
