23/02/2016
Source launches two new sectoral ETFs in the United States
p { margin-bottom: 0.25cm; line-height: 120%; } The ETF provider Source has announced the launch of two new ETFs providing targeted exposure to the financial services and real estate sectors of the S&P 500 index. The two products, each of which charges 0.30%, are the Source Financial Services S&P US Select Sector Ucits ETF and the Source Real Estate S&P US Select Sector Ucits ETF. The US sectors figure among the most active market sectors in the world, with about USD6bn in ETFs traded each day. Source is the leader in the market for US sectoral ETFs listed in Europe, with 85% of total assets in 11 dedicated ETFs and more than 90% of the daily trading volume. Each US sectoral ETF from Source aims to provide the performance of one of the S&P Select Sector Capped 20% indices. The weightings are based on market capitalisation, but the maximal weight of individual constituents is limited, so as to comply with the UCITS Directive. The indices have shown high correlations with the S&P Select Sector indices (non-capped), which are used as underlyings for many ETFs listed in the United States, but which are not compliant with the UCITS Directive. The track records for Source ETFs of the US market as compared with their benchmark indices are consistent, with tracking errors generally of less than 0.003%.
