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Lyxor Asset Management has become the first ETF provider to offer investors currency-hedged ETF share classes on the Euro Stoxx 50 Index.

Lyxor has launched a pair of USD and GBP currency-hedged Euro Stoxx 50 ETFs on the London Stock Exchange.

Through the newly launched Lyxor UCITS ETF EURO STOXX 50 Monthly Hedged C-USD (MSEU) and Lyxor UCITS ETF EURO STOXX 50 Monthly Hedged C-GBP (MSEX), investors are now able to gain USD- and GBP-hedged exposure, respectively, to Europe’s leading blue-chip index for the Eurozone in low-cost ETF format.

The ETFs, which have been listed on the London Stock Exchange, come at a time of increased currency volatility where fluctuations in exchange rates can lead to significant divergences in performance between index returns in local currency and the returns of a non-hedged ETF product that is listed in a different currency.

Commenting on the launch, Arnaud Llinas, Lyxor’s Head of ETFs and Indexing, said: “Lyxor is always looking for new investment opportunities to meet investor needs and has expanded its ETF range accordingly. Our currency-hedged ETFs tracking the Euro Stoxx 50 Index therefore offer exposure to European equities, while mitigating the fluctuations of the Euro against the listing currency.”

Paris-based Lyxor is the leading ETF provider on the Euro Stoxx 50 indices with approximately $6.5 billion in assets under management linked to the index and is variants.

Both ETFs carry a total expense ratio of 0.20% per annum.