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The Spanish stock exchange today launched trading in two new exchange traded funds (ETFs) which, for the first time in Spain, are linked to commodities as underlying assets. The new exchange traded funds were issued by Lyxor Asset Management. With these, there are now 43 ETFs listed on the Spanish stock exchange.
Recent regulatory changes have broadened the range of underlying assets in the ETF segment. The listing, today, of two indices linked to a wide range of commodities adds to the traditional offering of equity and fixed income indices. In this way, the Spanish stock exchange makes available to investors new investment and portfolio diversification opportunities against a backdrop of high transparency and efficiency.
7 July marked the fourth anniversary of the start of the Spanish stock exchange’s ETF segment. During this time, ETFs on the Spanish market have performed spectacularly. Trading in the first half of 2010 totalled over €4.39 billion, up 188% from the same period in 2009.
ETFs are fund-share hybrid investment vehicles that combine the diversification of a fund's portfolio and the flexibility offered by share trading. ETFs have opened a broad array of investment opportunities, for institutional and retail investors alike, as they allow investors to gain exposure to countries, regions, sectors and different asset classes through a single stock exchange transaction, in real time and at a lower cost lower than that of other investment vehicles.
