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Lyxor ETF LSE-listed Products Update
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Exchange-Traded Funds
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Since its entry into the UK market in May 2007, Lyxor AM, the wholly-owned subsidiary of Société Générale, has steadily built its presence with regular launches of LSE-listed ETFs. The latest focusing on the exciting area of the US, emerging markets and renewable resources. Read on to find out more, or visit www.lyxoretf.co.uk for a full list of Lyxor’s LSE-listed product range.
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Lyxor ETF Dow Jones Industrial AverageTM
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Underlying Index
Dow Jones Industrial Average
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LSE Code
LIND
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Total Expense Ratio p.a.
0.50%
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About the Index
The Dow Jones Industrial AverageSM is a price-weighted average of blue-chip stocks. The index covers all industries with the exception of Transportation and Utilities.
The index has long been an acknowledged indicator of the stock market because it gives immediate access to large and well-known US companies.
As of February 2008, the Dow Jones Industrial Average had 30 companies with a total index market capitalisation of USD 4.03 trillion.
>>Click here to download the factsheet on the index
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The case for investing in the US
Against a backdrop global economic slowdown, US policy-makers are pushing the pro-growth levers to the maximum to support the economy in 2008 and provide a lift for 2009.
Policy stimulus centers around:
-Monetary Policy: aggressive rate cuts, with Fed Fund rates expected to be cut to 2% by mid 2008
-Fiscal Policy: proposed tax rebates of about USD 100 bn to be disbursed in the second and third quarters of 2008 would provide a jump in disposable income and bolster sentiment.
-Agency and regulatory reforms: expansion plans for the various housing and mortgage authorities are under discussion and could be very meaningful in restoring liquidity for the mortgage market.
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Historical Performance
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Top 5 Index components by weight
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>>Click here to download the factsheet on the ETF |
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Company
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Industry
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Index weight
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International Business Machines
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Technology
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7.53%
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Chevron Corp.
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Oil & Gas
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5.75%
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Exxon Mobil Corp.
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Ind Goods
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5.75%
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Boeing Co.
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Ind Goods
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5.46%
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3M Co.
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Pers House
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5.20%
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Source: Bloomberg as at 29 February 2008
Past performance is not indicative of future performance. The index performance shown is in the base currency of the index. Where this differs from the ETF trading currency, the resulting currency exposure is not hedged. |
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Lyxor ETF New Energy
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Underlying Index
WAEXcw
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LSE Code
LNEW
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Total Expense Ratio p.a.
0.60%
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About the Index
The WAEXcw index includes the 20 largest stocks involved in:
-Renewable energy (solar, wind and biomass).
-Energy efficiency (better use of energy generation, which involves industries such as energy meters and supraconductors).
-Decentralised energy supply (power generation in close proximity to the
consumer, involving microturbines and fuel cells).
WAEXcw is a market-cap weighted benchmark, with a cap at 10% so as to maintain an effi cient diversifi cation. The index is calculated by Dow Jones and compiled by Sustainable Asset Management. It is rebalanced every quarter and an index review takes place every six months.
>>Click here to download the factsheet on the index
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The case for investing in alternative energy
According to a World Bank study, global energy consumption is projected to rise by approximately 50% over the next 25 years.
-The oil price has risen to an all-time high and this trend is unlikely to be reversed. Therefore, alternative evergy is a vital and innovative way to deal with the energy issue.
-A booming sector: Renewable and inexhaustible energy sources have moved to the top of the energy policy agenda – above all because they provide an alternative to fossil fuels and nuclear energy.
-Today renewable sources cover approximately 13% of global primary energy requirements. According to specialists, this share could be increased to more than 50% by 2050.
Source: SG Research, May 2007
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Historical Performance
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Top 5 Index components by weight
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>>Click here to download the factsheet on the ETF |
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Company
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Industry
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Index weight
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Vestas Wind
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Energy
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12.63%
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Gamesa
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Industrial
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10.75%
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First Sola
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Energy
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10.00%
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Suzion Energy
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Industrial
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9.53%
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Cemig PN
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Energy
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8.93%
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Source: Bloomberg as at 29 February 2008
Past performance is not indicative of future performance. The index performance shown is in the base currency of the index. Where this differs from the ETF trading currency, the resulting currency exposure is not hedged. |
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Lyxor ETF World Water
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Underlying Index
WOWAXcw
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LSE Code
LWAT
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Total Expense Ratio p.a.
0.60%
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About the Index
The WOWAXcw index is a benchmark of the world water sector consisting of the 20 largest companies in the fi elds of water utilities, water infrastructure and water treatment.
WOWAXcw is a market-cap weighted benchmark, with a cap at 10% so as to maintain an effi cient diversifi cation.
The index is calculated by Dow Jones and compiled by Sustainable Asset
Management. It is rebalanced every quarter and an index review takes place every six months.
>>Click here to download the factsheet on the index
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The case for investing in water
-The United Nations anticipates a tripling of fresh water usage in the next 30 years. As a consequence, water will become a scarce resource globally by the year 2025.
-An attractive investment opportunity for investors.
-To date, over 90% of the global water supply is in the public domain. However, the need for investments as well as the strained financial situation of many public budgets could lead to a significant increase in the market share for private corporations.
-3 main areas of expertise are needed to overcome the challenges in the water sector and are therefore interesting investment ideas for investors:
Water utilities
Water infrastructure
Water treatment
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Historical Performance
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Top 5 Index components by weight
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>>Click here to download the factsheet on the ETF |
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Company
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Industry
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Index weight
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Kelda Group
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Utilities
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9.79%
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Veolia Environmental
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Utilities
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9.72%
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United Utilities
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Utilities
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9.53%
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Severn Trent
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Utilities
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9.52%
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Geberit N
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Industrial
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9.49%
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Source: Bloomberg as at 29 February 2008
Past performance is not indicative of future performance. The index performance shown is in the base currency of the index. Where this differs from the ETF trading currency, the resulting currency exposure is not hedged. |
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Lyxor ETF MSCI World
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Underlying Index
MSCI World
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LSE Code
LWOR
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Total Expense Ratio p.a.
0.45%
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About the Index
The MSCI World Index is a free float-adjusted market capitalisation weighted index that is designed to measure the equity market performance of developed markets.
As of February 2008 the MSCI World Index consisted of 23 developed market countries with 1945 companies and combined market capitalisation of USD 26,065 billion.
The index is calculated without dividends, with net or gross dividends reinvested, in both US dollars and local currencies. The index has been in existence since 1969.
>>Click here to download the factsheet on the index
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Easy global equity exposure
Through the MSCI World, investors gain exposure to global equities and consequently benefit from geographic diversifi cation, with exposure to countries from Australia to Switzerland, the UK to Sweden, across 10 major industry sectors.
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Historical Performance
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Top 5 Index countries by weight
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>>Click here to download the factsheet on the ETF |
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Country
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Index weight
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United States
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50.46%
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United Kingdom
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11.69%
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Japan
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11.12%
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France
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4.98%
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Germany
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3.67%
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Source: Bloomberg as at 29 February 2008
Past performance is not indicative of future performance. The index performance shown is in the base currency of the index. Where this differs from the ETF trading currency, the resulting currency exposure is not hedged. |
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Lyxor ETF Turkey (DJ Turkey Titans 20SM)
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Underlying Index
Dow Jones Turkey Titans 20SM
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LSE Code
LTRK
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Total Expense Ratio p.a.
0.65%
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About the Index
The Dow Jones Turkey Titans 20 IndexSM is a free fl oat-adjusted market capitalisation weighted index.
As of February 2008, the Dow Jones Turkey Titans 20SM Index comprised 20 companies with a total index market capitalisation of USD 35.30 billion.
The index was developed with a base level 100 as of 31st December 2002.
>>Click here to download the factsheet on the index
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The case for investing in Turkey
-According to The Economist, a rise in domestic demand and strong export growth will boost growth to around 5-5.5% in 2009.
-Industrial output and exports strengthened in late 2007 and domestic motor vehicle sales surged.
-A recent law passed offering tax breaks to companies employing more than 50 people in research and development will probably attract substantial investment from automotive and technology fi rms and help to increase hightech exports.
Source: www.economist.com, March 2008
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Historical Performance
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Top 5 Index components by weight
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>>Click here to download the factsheet on the ETF |
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Company
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Index weight
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Turkcell Iletisim Hizmetleri A.S.
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11.84%
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Turkiye Garanti Bankasi A.S.
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11.46%
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Turkiye Is Bankasi A.S. C
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10.97%
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Akbank T.A.S.
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9.16%
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Eregli Demir ve Celik Fabrikalari T.A.S.
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7.07%
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Source: Bloomberg as at 29 February 2008
Past performance is not indicative of future performance. The index performance shown is in the base currency of the index. Where this differs from the ETF trading currency, the resulting currency exposure is not hedged. |
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Lyxor ETF Hong Kong (HSI)
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Underlying Index
Hang Seng Index
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LSE Code
LHKG
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Total Expense Ratio p.a.
0.65%
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About the Index
The Hang Seng Index is a free fl oat-adjusted market capitalisation weighted index of selection of companies from the Stock Exchange of Hong Kong.
As of February 2008, the Hang Seng Index comprised 43 companies with a total index market capitalisation of HKD 11.39 trillion.
>>Click here to download the factsheet on the index
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The case for investing in Hong Kong
-Hong Kong’s real GDP growth is forecast to slow but will remain at high levels, easing from 11.4% in 2007 to 8.4% in 2012.
-Strong domestic demand is expected over the period, as strong wage growth will increase domestic consumption, counterbalancing the weakening contribution of net exports to growth.
-Services exports will be boosted in 2008 by the Olympic Games in the capital, Beijing. Investment income from abroad will rise strongly.
Source: www.economist.com, March 2008
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Historical Performance
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Top 5 Index components by weight
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>>Click here to download the factsheet on the ETF |
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Company
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Industry
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Index weight
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HSBC Holdings
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Banks
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15.70%
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China Mobile
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Telecom
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13.09%
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Petrochina
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Oil & Gas
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4.53%
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Sun Hung Kai Properties
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Insurance
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4.25%
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China Life Insurance
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Oil & Gas
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3.78%
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Source: Bloomberg as at 29 February 2008
Past performance is not indicative of future performance. The index performance shown is in the base currency of the index. Where this differs from the ETF trading currency, the resulting currency exposure is not hedged. |
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