The new Ossiam world minimum variance exchange traded fund (ETF), now available on Deutsche Boerse’s Xetra system, tracks for the first time the performance of the world's most liquid companies from the five regional indices of the Standard & Poor’s (S&P) Global 1200 index – covering the S&P 500; S&P Europe 350; S&P Topix 150; S&P/TSX 60; and S&P/ASX All Australian 50.
The broadly diversified global portfolio is composed using a dynamic process, says Ossiam. The selected shares are weighted in accordance with an optimisation process which creates high risk diversification and accordingly low variance. The target audience is investment banks, traders and cash rich, profit-seeking treasuries.
The Ossiam ETF world minimum variance trackable index joins Deutsche Boerse’s XTF segment, which currently consists of 1005 exchange-listed index funds, making it one of the largest such offerings on all the various European stock exchanges. The wide selection, combined with an average monthly trading volume of €12 billion, makes Xetra one of Europe’s leading trading venues for ETFs, and as the Ossiam addition proves it is still seeking to grow.
By Neil Ainger