An ETF issuer announces that the total assets in its range of products has reached US$2.2BN (€1.5BN). Source continues …
to be the fastest growing new European ETP issuer in the history of the market.
Source’s new sector products have gathered nearly US$950MM (€650MM) in just over two months in the market and have been widely accepted in the institutional market, particularly by hedge funds. These products were designed to facilitate trading and investment through buying, short-selling, borrowing and lending – which represents an evolutionary step in the European ETP market.
Commenting on the recent acceleration in asset gathering, Source’s CEO Ted Hood said, “The speed with which the market has embraced our new optimized sector products has amazed us. We believe that the market has been waiting for a set of products that are fully functional and combine trading efficiency, improved counterparty risk profile and a set of indices designed to address the needs of both traders and investors.”
A new level of trading liquidity
Source continues to challenge the idea that the European ETF market is naturally illiquid. Source’s optimised sectors have seen daily turnover topping 20% of outstanding assets, which is multiples of the 1.5% turnover that is the average on-exchange liquidity across the European ETF market. Source’s optimised sector products have jumped to EUR650MM (US$950MM) in asset representing 13% of outstanding sector assets but on peak days over 50% of market trading volumes. The liquidity of Source’s optimised sectors has even drawn hedge funds to invest which is surprising given that they have been almost absent from the European ETF market
Headline products
Some of Source’s most popular funds include:
- DJ EURO STOXX 50 EUR315MM
- MSCI USA US$209MM
- Industrials Optimised Sector EUR131MM
- MSCI World US$107MM
- Insurance Optimised Sector EUR98MM
- Healthcare Optimised Sector EUR88MM
Source UK is regulated by the UK Financial Services Authority.
Source: ETFWorld.co.uk – LSE
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