BlackRock launches distributing share class for Euro Stoxx 50 ex-financials ETF

Apr 12th, 2018 | By | Category: Equities

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BlackRock has launched a distributing share class for the iShares Euro Stoxx 50 ex-Financials UCITS ETF.

iShares launches ETF on LSE and Xetra

The iShares Euro Stoxx 50 ex-Financials UCITS ETF has AUM of €44m.

The new distributing share class has been listed on Germany’s Xetra and Börse Frankfurt (IBC8 GY) exchanges as well as the London Stock Exchange (IBC8 LN).

The fund originally launched with an accumulating share class on the London Stock Exchange in December 2013. It currently has assets under management of €44 million.

Both share classes have total expense ratios (TERs) of 20bps.

The fund tracks the Euro Stoxx 50 ex-Financials Index. This index is created by stripping financials out of the Euro Stoxx 50 Index, to leave an index made up of 39 non-financial holdings.

The ex-financials index has outperformed its parent index over the past three years, returning a cumulative 3.3% versus 1.0% for the Euro Stoxx 50 (data as at 29 March 2018).

The ex-financials index has its largest country exposure to France (38.3%), followed by Germany (34.4%) and the Netherlands (10.8%). Its three largest company exposures are Total (6.8%) Sap (5.2%) and Siemens (4.9%).

This is similar to the Euro Stoxx 50 Index which has its largest country exposure to France (36.8%), followed by Germany (32.2%) and the Netherlands (10.6%). The three highest company exposures are also Total (5.3%), Sap (4.0%) and Siemens (3.7%).

The real difference can be seen in the sectors. The largest sector in the ex-financials index is industrials at 17.3%, followed by consumer discretionary at 15.8% and consumer staples at 13.5%. Financials (21.7%) represents the biggest weighting by sector in the Euro Stoxx 50, followed by industrials at 13.4% and consumer discretionary at 12.2%.

BlackRock also offers a fund tracking the broader Euro Stoxx 50. The iShares Euro Stoxx 50 UCITS ETF (EUE LN) is far more popular with investors with AUM of €4.9 billion and a TER of 0.16%.

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