The 5 new ETFs will further complement Lyxor AMâs existing Asia- and commodities-focused ETF range. They are:
- Lyxor ETF MSCI Asia APEX 50
- Lyxor ETF MSCI Thailand
- Lyxor ETF MSCI Malaysia
- Lyxor ETF MSCI India
- Lyxor ETF Commodities CRB Non-Energy (Reuters/Jefferies CRB Non-Energy Index)
Lyxor ETF MSCI Asia APEX 50 will be the first ETF in Asia to track the recently launched MSCI Asia APEX 50 Index, which comprises 50 of the largest and most liquid securities in Asia excluding Japan. The MSCI Asia APEX 50 Index, the first tradable index offered by MSCI Barra, serves as a tradable proxy to the broader MSCI AC Asia ex-Japan Index, a benchmark index widely followed by investors in Asia. The new ETF will charge a total expense ratio (TER) of 0.50% p.a. and is expected to complement the MSCI Asia APEX 50 index futures â the first pan-Asian contract listed in the region â already trading on SGX.
Lyxor ETF MSCI Thailand and Lyxor ETF MSCI Malaysia, two ETFs focusing on the emerging markets in Asia, will make their debut in the region for the first time. The introduction of both ETFs will add depth and breadth to an already impressive line-up of Asia-focused Lyxor ETFs listed on SGX, allowing investors to zero in on specific market performances from resource-rich Thailand and Malaysia. The total expense ratio (TER) charged by each of the two ETFs above will be 0.65% p.a.
Lyxor ETF MSCI India will be the second Lyxor ETF focusing on the fast-growing Indian market, after the Lyxor ETF Nifty India launched on SGX in May 2008. It is listed on the back of strong demand for another India-based equity ETF, following the strong growth and active trading of the Lyxor ETF Nifty India since its launch. The new Lyxor ETF MSCI India, which charges a highly competitive all-in-one TER of 0.85% p.a., will offer local and regional investors an economical alternative to gain broad Indian exposure through the MSCI India Index.
Finally, Lyxor ETF Commodities CRB Non Energy will augment the popular Lyxor ETF Commodities CRB which started trading on SGX in January 2008. The latest commodity ETF to be listed in Singapore, it will provide investors with diversified exposure to a portfolio of non-energy related commodities including metals, agricultural and soft commodities. Its benchmark index, the Reuters/Jefferies CRB Non Energy Index, is designed to provide timely and accurate representation of a long-only, diversified investment in 15 non-energy related commodities through a transparent calculation methodology. This commodity ETF will charge a highly competitive annual management fee of 0.35% and a transaction cost of 0.35% p.a.
Commenting on the new launches, Mr Joseph Ho, Managing Director & Head of Exchange Traded Funds, Asia Pacific, SociÃ©tÃ© GÃ©nÃ©rale, remarked, "The power of ETFs lie in the diversity and number of products on offer, making them convenient and cost-effective investment tools for customising portfolios and investment strategies. It is in this regard that Lyxor AM will continue working with SGX to add products to our ETF platform.â
âWe are pleased to once again work with Lyxor to launch five new ETFs at one go. With these new listings, we now cover most of the major Asian markets, augmenting our position as the Asian Gateway for market access to the region. This is also part of our holistic approach to cater to private and institutional investors both in the derivatives and cash markets. We do this by offering them complementary products with cross-trading opportunities, such as ETFs and futures contracts on the Straits Times, MSCI Asia APEX 50, MSCI Taiwan and CNX Nifty indices,â said Mr Andrew Ler, Senior Vice President & Head of Private Investors at SGX.
With the launch of these new ETFs, SGX has 24 ETFs covering mainly Asian equity markets such as Singapore, India, Greater China, ASEAN, Korea and Japan and also on commodities, e.g. gold.
Lyxor ETFs are passively-managed index tracking funds combining the liquidity benefits of exchange-listed securities and the diversification advantages of traditional mutual funds, providing valuable portfolio building blocks.