NYSE Euronext is pleased to announce that iShares, the Exchange Traded Fund (ETF) platform of BlackRock, Inc. today has listed three Currency Hedged Equity ETFs on its Amsterdam market. These currency hedged ETFs enable investors to invest internationally and hedge currency exposure in one trade, without having to monitor and maintain a currency hedge. These ETFs are the first of its kind on NYSE Euronext.
In addition, iShares listed the iShares MSCI USA, which invests in the MSCI USA Index, one of the most popular benchmarks for institutional investors seeking exposure to the U.S. equity market.
The funds track some of iShares most popular and traded global indices offered by MSCI and Standard and Poor’s:
• iShares MSCI Japan Monthly EUR Hedged
• iShares MSCI World Monthly EUR Hedged
• iShares SP500 Monthly EUR Hedged
• iShares MSCI USA
In line with market best practice, the indices (safe the MSCI USA index) incorporate a monthly currency hedge, with currency exposure hedged using one month forward FX contracts. The hedge is not adjusted during the month for price movements of securities, corporate actions or index changes, and reduces, rather than eliminates, currency exposure.
iShares currency-hedged ETFs allow investors to invest internationally and hedge currency exposure in one transaction, eliminating FX operational and administrative hurdles.
“We are proud that iShares has selected to list these innovative products on our Amsterdam market supported by high capacity and low latency technology offering superior transparency and liquidity to investors,” said Pedro Fernandes, European Head of ETFs at NYSE Euronext. He added: “With the 541 products listed on the European market, NYSE Euronext meets the diverse and growing demand for ETFs in Europe”.
Roel Thijssen, managing director at BlackRock and head of iShares Benelux, said: “These latest currency hedged products – the first of their kind on NYSE Euronext - provide investors with the opportunity to hedge against unintended and often undesirable currency risk, a consideration which is particularly important during periods of volatile currency fluctuations. The US equity market is very popular with investors and the MSCI USA index is well known to many of our clients. In line with the success of the iShares S&P 500 fund, we are confident that the iShares MSCI USA fund will gather significant assets. The funds act as the perfect complement to our existing range of equity product products, and are in line with our strategy of offering investors the most innovative and diverse range of products with which to invest.”
The launch takes the total number of iShares ETFs listed on NYSE Euronext to
101, of which 48 are multi-listed on both the Amsterdam and Paris markets.
The ETF segment continues to grow and is increasingly successful on the European
and US NYSE Euronext markets. These products registered an Average Daily
Turnover (ADT) of €379.3 million on the European NYSE Euronext markets in
2010, an increase of 26.3% compared with the daily average of €300.3 million
in 2009.
ETFs or Trackers are open-end investment funds listed on a stock exchange and tradable in the same way as an individual security. An ETF closely follows or tracks a particular benchmark index, seeking to replicate the performance of the index and offering flexible, low-cost exposure to entire markets or market segments in just one easy transaction. They also combine the simplicity of equities with the diversified risk of investment funds. A further benefit is the low level of management fees associated with this type of passive investment.