NYSE Euronext is pleased to announce that the Royal Bank of Scotland (RBS) launched five new Exchange Traded Funds (ETFs) on NYSE Euronext Amsterdam. The new ETFs, also known as Trackers, offer investors the opportunity to invest in emerging and frontier markets*.
The new RBS Emerging Markets ETFs are:
• MSCI Emerging and Frontier Africa ex South Africa Index ETF
• MSCI Frontier Markets Index ETF
• MSCI GCC Countries ex Saudi Arabia Top 50 Capped Index ETF
• MSCI Brazil (ADR) EUR Hedged Index ETF
• MSCI EM LatAm (Brazil ADR)EUR Hedged Index ETF
The MSCI Emerging and Frontier Africa ex South Africa Index ETF gives investors the opportunity to invest in the African share market, exclusive of South Africa. The MSCI Frontier Markets Index ETF provides exposure to the stock of 25 frontier markets, that are widely spread around the world (the less developed emerging markets). The MSCI GCC Countries ex Saudi Arabia Top 50 Capped Index ETF offers an opportunity to invest in the share markets of cooperating countries on the Arabian Peninsula, i.e. Kuwait, Qatar, the United Arab Emirates, Oman and Bahrain, but exclusive of Saudi Arabia. The two ETFs designed to hedge currency risks provide hedged access to the stock markets of emerging Latin American countries Brazil, Chili, Columbia, Mexico and Peru.
"The outlook for economic growth continues to be more favourable in emerging markets than in developed Western markets. The new emerging and frontier markets ETFs are an addition to the existing range of the RBS Market Access ETFs and match our expertise in emerging and commodity markets," says Jean-Paul van Oudheusden, Head of Benelux Sales Equity Derivatives & Structured Retail. "Two of the five new ETFs offer the advantage of partially hedging currency exchange risk."
“We are pleased to welcome the new RBS Market Access ETFs to our Amsterdam market,” said Pedro Fernandes, European Head of ETPs at NYSE Euronext. “The new ETFs offer a growing number of investors flexible, transparent and cost-efficient investment opportunities in emerging markets. Demand for ETFs keeps growing, both in Amsterdam and elsewhere in Europe. NYSE Euronext's exchanging community accommodates this demand through its broad range of ETF listings and transparency in liquid, regulated and secure markets.”
NYSE Euronext is the largest market in the world for Exchange Traded Funds. The ETF segment of NYSE Euronext continues to grow in its European and US markets. On its regulated European market, NYSE Euronext currently has 591 ETFs listed, representing average daily turnover (ADT) of €472.1 million during the first three quarters of 2011, an increase of 23.3% in comparison with €383.0 million ADT during the same period last year. ETFs also perform well in the Netherlands, as shown by the 24.8% growth of the Dutch ETF market in 2011. There currently are 126 ETF listings in Amsterdam, with total assets under management (AUM) of approximately €50 billion.
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.
To mark the launch of the new ETFs, Rogier San Giorgi of RBS performed today’s opening gong ceremony. Rogier is part of the team responsible for public distribution of ETFs, turbos and certificates.
(*) Frontier markets are markets that are in an early stage of economic development.
