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BBVA Gestión will be the first entity to operate on the Spanish stock exchange’s ETF segment when it trades its first ETF – Acción ETF IBEX 35 – on July 20th.
On March 31st, the Spanish stock exchange granted 4 licences on the IBEX 35® to Barclays Global Investors, BBVA Gestión, Lyxor Asset Management and Santander Asset Management, after the due tender process finished.
BBVA’s ETFs will convey to investors the index’s performance and the dividends paid by the index’s constituents. In the case of Acción ETF IBEX 35 the dividends will be paid twice a year. BBVA will launch Acción ETF IBEX 35 at an inexpensive price, which will make possible trading ETFs for all types of investors. This product will carry a reduced management fee and the market makers will contribute to improve liquidity.
With the incorporation of the ETFS, BME makes good its goal of contributing to improve the competitiveness of the Spanish stock exchange industry and cooperating with the financial sector in the development and incorporation of new financial products which meet the demands of issuers and investors.
Investors will be able to access this new product, which tracks the performance of a stock exchange index and which can be bought and sold on the market with the high standards of transparency and liquidity. Besides the ETFs on the IBEX 35®, the segment will in future comprise new products on other indices, both of the IBEX® and LATIBEX family and international indices.
The main feature of the Exchange Traded Funds (ETFs) is that its units are traded in real time, just in the same way as any other traded security. It is a products that combines the diversification of a fund - as it is made up of all the shares it tracks – with the flexibility of a share. Moreover, this product is supported by the functions of a specialist, who contributes liquidity to the stock by keeping a maximum bid / ask spread for a certain volume.
