BNP Paribas cross-lists equity and real estate ETFs on SIX

Dec 20th, 2017 | By | Category: Alternatives / Multi-Asset

ETF STRATEGY NEWS! ETF Strategy is delighted to announce the launch of ETF Strategy Hub (hub.etfstrategy.com), an on-demand repository of webcasts, videos, podcasts and white papers. Debuting with Special Series on Technology & Innovation in China and the Digital Economy.


BNP Paribas Asset Management has cross-listed four ETFs on SIX Swiss Exchange. Three provide smart beta exposure to European and US-listed equities, and the other to a diversified portfolio of real estate companies and real estate investment trusts (REITs) listed in eurozone countries.

BNP Paribas cross-lists equity and real estate ETFs on SIX

BNP Paribas cross-lists equity and real estate ETFs on SIX.

Smart beta equity

Two of the smart beta equity funds provide access to high dividend-paying stocks in the US and Europe, and the third offers exposure to undervalued stocks in the US. The funds were initially launched in September of this year when they were rolled out on Xetra and Euronext Paris.

The BNP Paribas Easy Equity Dividend Europe UCITS ETF (EDEU SW) tracks the BNP Paribas High Dividend Europe Equity Index, which provides exposure to a basket of European shares that currently pay high dividends and are expected to do so sustainably in the future.

The BNP Paribas Easy Equity Dividend US UCITS ETF (DIUS SW) tracks the BNP Paribas High Dividend Yield US Equity Long Index, which provides exposure to US stocks that currently have a high dividend yield and are expected to continue to maintain this in the future.

The BNP Paribas Easy Equity Value US UCITS ETF (EVUS SW) tracks the BNP Paribas Equity Value US Index, which provides exposure to shares of US companies that appear undervalued based on an analysis of fundamental metrics.

Each of the three funds trades in euros, accumulates any income generated, and has a total expense ratio (TER) of 0.30%.

Commenting at the time of the funds’ initial launch, Isabelle Bourcier, head of ETF and index activity, BNP Paribas Asset Management, said, “The launch of these new ETFs underlines our desire to continue expanding our range of smart beta investment solutions and meets genuine client demand for portfolio diversification.”

Other smart beta equity ETFs within BNP Paribas’ line-up includes European momentum, quality and value funds, as well as low volatility funds focused on Europe, Germany and the US respectively.

“The continued development of our smart beta range draws on the recognised expertise of our indexed fund research and management teams, as well as competitive management fees,” said Bourcier.

Eurozone real estate

The BNP Paribas Easy FTSE EPRA/NAREIT Eurozone UCITS ETF (EEEA SW) tracks the FTSE EPRA/NAREIT Eurozone Capped Index, providing exposure to the listed real estate sector in the eurozone. The fund maintains its exposure through physical replication and BNP Paribas recommends a minimum five-year investment period in the fund.

Constituents are weighted by free-float market capitalization with a cap at 10%. Additionally, the total index weight of constituents whose individual weights exceed 5% is capped at 40%. Capping is applied at quarterly review.

The index is up 16% year-to-date and has returned 12.1% per annum over the past three years.

Due to its historically low correlation to traditional asset classes, a small allocation to real estate tends to improve the risk/return profile of stock/bond portfolios.

EEEA accumulates income generated within the ETF’s portfolio while an income-distributing share class has also been listed under the ticker EEEG SW. Both share classes have TERs of 0.50%.

Tags: , , , , , , , , , ,

Leave a Comment