Credit Suisse has added an important leading index to its product range: On May 19, the CS ETF (IE) on S&P 500 was listed for the first time on the SIX Swiss Exchange. This internationally renowned index is an important guide to trends in the US equity market. It comprises the 500 leading companies on the stock market from the largest industrial sectors in the US economy…..
Broad coverage of the US equity market
Although the S&P 500 focuses primarily on the large caps segment, the index covers a broad cross-section of companies – around 75 percent of the US equity market – and thus reliably represents the overall market. The S&P 500 is suitable for use as a module in portfolio construction.
High requirements of the companies in the index
Only companies that satisfy the index provider’s many requirements are included in the S&P 500. These include:
* US companies: Key factors are the company’s domicile, structure, and accounting standards, as well as its stock market listing
* Market capitalization: Companies with a market capitalization of over USD 3.5 billion. Free float: at least 50 percent of the stocks must be in free float
* Financial performance: Companies with a positive result in four consecutive quarters
* Sufficient liquidity and appropriate price: The ratio of the trade volume to market capitalization must be at least 1.0.
An unusually low equity price can compromise the stock’s liquidity.
Inexpensive
ETF are also very attractive instruments in terms of administration fees. As the administration fee for the CS ETF (IE) on S&P 500 is only 0.09% p.a., it is a very attractive means of making a widely diversified investment in the US equity market.
Flexible and efficient
In opting for this ETF, you are acquiring an inexpensive, highly diversified investment in US equities in one single transaction. Moreover, index adjustments and reinvestment of dividends from individual equities are made within the ETF, which is not the case in direct investments. You are thus spared the work of dealing with all these changes yourself.
Key Facts
Fund domicile: Ireland
Portfolio manager: Credit Suisse AG, Quantitative Strategies
Group, Zurich
Fund’s & trading currency: USD
Management fee p.a.: 0,09 % p.a.
Stock exchange: SIX Swiss Exchange
Benchmark: S&P 500 ® (Total Return Net)
Inception date: May 18, 2010
Swiss securities no.: 1 073 041
ISIN: IE00B5BMR087
Bloomberg code: CSSPX SW
Source: ETFWorld – Credit Suisse
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