Source, one of the largest providers of Exchange Traded Funds in Europe, today launches two new US sector ETFs, providing targeted exposure to the Financial Services and Real Estate sectors of the S&P 500 equity index.
US sectors are one of the most actively traded market segments in the world, with around $6 billion worth of sector ETFs traded each day. Source is the market leader in European-listed US sector ETFs, managing 85% of total assets across its 11 ETFs and capturing over 90% of average trading volume[1].
Christopher Mellor, Equity Product Management at Source, said: “The drivers of equity market returns typically shift along with changes in the economic climate and investor risk appetite. Some sectors tend to behave differently during certain phases of the cycle, and investors wanting to take advantage of this sector rotation are able to adjust their portfolio exposures through sector ETFs. These have been extremely popular tools for our investors, who currently have more than $1.6 billion[2] of assets across our range of US sector ETFs.”
Each Source US Sector ETF aims to deliver the performance of the relevant S&P Select Sector Capped 20% Index. Weightings are based on market capitalisation, but with the maximum weighting of individual constituents capped to ensure UCITS-compliance. The indices have shown high correlation with the (uncapped) S&P Select Sector Indices, which are used as the underlying for many US-listed ETFs but are not UCITS-compliant. The performance track records of Source US Sector ETFs compared to their reference indices have been consistent, with tracking errors typically less than 0.003%.
Product details
Fund name |
Source Financial Services S&P US Select Sector UCITS ETF |
Source Real Estate S&P US Select Sector UCITS ETF |
Exchange |
London Stock Exchange |
London Stock Exchange |
Bloomberg code |
XFNS LN |
XRES LN |
ISIN |
IE00BYM8JC42 |
IE00BYM8JD58 |
Trading currency |
USD |
USD |
Annual management fee |
0.30% |
0.30% |
Source UK Services Limited is authorised and regulated by the Financial Conduct Authority in the UK.