LSE announces ETF launch
Q:
The recent launch of 18 exchange-traded funds (ETFs) on the London Stock Exchange (LSE) has increased the index’s offering by a third.
A:
Including the 18 new ETFs released by Deutsche Bank last week, 76 are now listed on the LSE, including the first to give investors access to the whole of Latin America – Deutsche Bank’s MSCI Latin America ETF.
Garth Ritchie, European head of global markets equity at Deutsche Bank, said, ‘We are launching these 18 new db x-tracker ETFs because we see a great opportunity to grow the market for ETFs in the UK. Over the coming months, we plan to provide UK investors with more innovation and choice with ETFs through strategies such as short indices and asset classes like bonds and commodities.’
The LSE’s ETF offering now covers a variety of UK and global equity and bond indices. Investors can access a multicurrency trading service for ETFs and so can buy ETFs in either the local currency or the base currency of the index in question.
David Shrimpton, head of product management and development at the LSE, said, ‘This [launch] is great news for investors as it significantly increases the range of ETFs available on the London Stock Exchange. The arrival of such a large number of trackers in just one week highlights the appetite among issuers and investors for ETFs now that the stamp duty disadvantage has been removed.’
According to the LSE, the value traded in ETFs on the exchange during the first half of this year increased by 79 per cent on the first half of 2006, reaching £15.6 billion. The number of UK institutions using ETFs has grown by 58 per cent in the last two years.
See the September 2007 issue of What Investment for a full feature on ETFs.
There are currently no comments on this post.
Advertisement
Recommendations
Top Ten Life Funds
| Fund | Offer | 1y | 3y | 5y |
|---|---|---|---|---|
| UBS Life Structured Credit A | 85.39 | 230.1 | n/a | n/a |
| Skandia Finland FIM Russia | 11.36 | 185.6 | -3.8 | 79.2 |
| Skandia Finland JPM New European | 1.96 | 140.9 | -9.1 | n/a |
| Canlife SVM UK Opportunities LS4 Acc | 103.40 | 133.4 | -13.8 | 35.5 |
| Skandia Finland Alfred Berg Ryssland | 0.86 | 132.8 | n/a | n/a |
| AXA JPM New Europe | 193.80 | 132.1 | n/a | n/a |
| Zurich Sterling JPM New Europe | 258.80 | 130.6 | n/a | n/a |
| L&G SVM UK Opportunities | 100.32 | 130.0 | -16.4 | n/a |
| Skandia JPM New Europe | 253.10 | 128.8 | 18.2 | 98.1 |
| Merch Inv Sanlam Global Financial S6 | 106.50 | 126.4 | n/a | n/a |
Top Ten Pension Funds
| Fund | Offer | 1y | 3y | 5y |
|---|---|---|---|---|
| Aviva HSBC Indian Equity Pn S6 | 0.00 | 175.7 | n/a | n/a |
| AXA JPM New Europe P | 215.50 | 148.8 | n/a | n/a |
| Zurich JPM New Europe Pn ZP | 468.30 | 148.2 | n/a | n/a |
| LV= JPM New Europe Pn | 93.20 | 147.2 | n/a | n/a |
| Scot Eq JPM New Europe Pn | 103.24 | 145.9 | n/a | n/a |
| Winterthur JPM New Europe Pn 4 | 371.60 | 145.9 | n/a | n/a |
| Aviva JPM New Europe Pn S6 | 0.00 | 144.2 | n/a | n/a |
| Aviva Fidelity India Focus Pn S6 | 0.00 | 139.8 | n/a | n/a |
| Stan Life UK Equity Unconstrained Pn S5 | 118.07 | 139.8 | n/a | n/a |
| Skandia JPM New Europe Pn | 308.50 | 138.3 | 24.2 | 129.0 |
Top Ten Investment Trusts
| Fund | Price | NDY | 1y | 3y | 5y |
|---|---|---|---|---|---|
| Downing Protected VCT IX plc A | 5.03 | 0.00 | 4930.0 | n/a | n/a |
| Invesco Property Income Trust Limited | 4.13 | 0.00 | 662.3 | -94.7 | -93.0 |
| Matrix European Real Estate | 120.50 | 0.00 | 588.7 | n/a | n/a |
| Greenwich Loan Income | 28.25 | 7.08 | 504.1 | -65.7 | n/a |
| Close High Income Properties Ord | 17.75 | 0.00 | 407.1 | -81.4 | -73.8 |
| Marwyn Value Investors LD | 65.00 | 0.00 | 400.0 | -41.2 | n/a |
| Prosperity Russia Domestic | 0.65(USD) | 0.00 | 398.1 | -36.8 | n/a |
| Invista European Real Estate | 32.00 | 0.00 | 396.1 | -83.9 | n/a |
| Candover Investments Plc Ord | 552.50 | 0.00 | 365.3 | -71.4 | -50.3 |
| Raven Russia | 52.50 | 0.95 | 325.2 | -47.2 | n/a |
Top Ten Unit Funds
| Fund | Yield | 1y | 3y | 5y |
|---|---|---|---|---|
| Close Special Situations | 0.30 | 185.6 | 35.3 | n/a |
| Close Beacon Investment | 0.00 | 151.3 | -13.0 | -4.2 |
| JPM New Europe A Acc | 0.05 | 146.2 | 23.9 | 128.4 |
| Stan Life Inv UK Equity Unconstrained Ret | 0.69 | 138.2 | 15.4 | n/a |
| SVM UK Opportunities A | 0.20 | 132.2 | -15.1 | 34.1 |
| Jupiter India Acc | 0.00 | 126.4 | n/a | n/a |
| Invesco Perp European Opportunities Acc | 0.49 | 124.1 | n/a | n/a |
| Oceanic CF Australian Natural Resources GBP | 0.00 | 123.9 | 13.4 | n/a |
| Neptune Russia & Greater Russia A Acc GBP | 0.00 | 119.0 | 25.1 | 215.1 |
| Invesco Perp Emerging European Acc | 0.87 | 116.5 | n/a | n/a |


