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NYSE Euronext is pleased to announce that iShares, the Exchange Traded Fund (ETF) arm of Barclays Global Investors today has listed two new Exchange Traded Funds (ETFs) on Euronext Amsterdam, the “iShares € Covered Bond” and “The iShares S&P Emerging Markets Infrastructure fund”. With the introduction of these new ETFs iShares is responding to growing investor demand for transparency and diversity amid continued market turmoil.
The “iShares € Covered Bond” provides investors with liquid exposure to a range of European covered bonds based on the Markit iBoxx € Covered index. The index currently contains 438 bonds, 95 per cent AAA-rated, with an average annual yield of 4.51 per cent and duration of 4.18 years (as at 28 January 2009).
The “iShares S&P Emerging Markets Infrastructure fund” provides investors with liquid exposure to 30 of the world’s largest publicly listed emerging market companies, focusing on transportation (20 per cent), energy (40 per cent) and utilities (40 per cent). In two years, investments in infrastructure in emerging market economies total more than $1 trillion.
The ETF segment continues to grow and is increasingly successful on the European and US NYSE Euronext markets. A daily average turnover of €363 million was registered in these products on the Euronext markets in 2008, an increase of 16% compared with the daily average in 2007 of €313 million. In addition, January 2009 was one of the best months ever for the Euronext ETF segment.
Joost van der Does de Willebois, Chairman of Euronext Amsterdam and Member of NYSE Euronext Management Committee, said “ETF trading is growing significantly; January was the second best month ever in terms of the number of transactions. The launch of these new ETFs is a welcome response to the clear demand from investors for this type of investment.”
Roel Thijssen, head of iShares Benelux, said, “ETFs have come of age in current volatile markets, where transparency and liquidity are critical, and where investment opportunities are not easy to find. Covered bonds are secure because they have a preferential claim on a legally segregated pool of collateral assets. At the same time, strong economic fundamentals in emerging markets are a source of potential returns for investors.”
