An ETF issuer is pleased to announce the launch today of 18 ETFs linked to the newly created …
Dow Jones STOXX 600 Optimised Supersector Index family.
These new Source Supersector ETFs represent a new generation of funds created to deliver exposure to significantly improved sector indices and designed to offer maximum trading flexibility, allowing investors to now efficiently obtain both long and short exposure using a single product.
The Dow Jones STOXX Optimised Supersector Indices were specifically created by Source and Stoxx to address several key factors including concentration, diversification, liquidity and availability to borrow stocks in the index. One of the defining features of these new indices is that they are the first to take into account an investors’ ability to borrow a stock in the stock lending market and the index constituents are adjusted accordingly. To incorporate this unique aspect, STOXX uses data provided by Data Explorers, an independent, provider of stock lending and short interest information.
In order to ensure that its ETFs offer maximum flexibility, Source has worked with its partners (Bank of America Merrill Lynch, Goldman Sachs, Morgan Stanley and Nomura) to create a liquid and efficient lending market for these new sector products. This liquidity is essential in enabling investors to use these ETFs to take both long and short positions. This is an evolutionary step in the European market as to date, the lack of an efficient lending market for ETFs has hampered the growth of
trading volumes, and is a major factor in the huge difference in liquidity between the US and European ETF markets (US$75 billion daily on-exchange turnover versus US$2 billion). Source’s focus on trading access and liquidity is a clear differentiator in its approach, products and platform and a value-added proposition for investors.
The addition of the Supersectors brings Source’s product range to 54 across the equity and commodity segments of the market. As announced last week, Source has passed US$500 million of assets raised in its first three months of operation and now has US$774 million as of Friday 24 July 2009.
Investors continue to reinforce the importance of Source’s focus on limited counterparty risk and increase trading liquidity.
Source UK is regulated by the UK Financial Services Authority.
Source: ETFWorld.co.uk – Source
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