Lyxor launches low cost Asian emerging markets equity ETF

Apr 3rd, 2018 | By | Category: Equities

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ETF provider Lyxor has launched the Lyxor MSCI Emerging Markets Asia UCITS ETF on the London, Frankfurt and Milan exchanges. The new ETF offers exposure to Asian emerging market equities by tracking the MSCI Emerging Markets Asia Index.

Over the one-year period from the 28 February 2017 to 28 February 2018, the MSCI Emerging Markets Asia index has returned 33.1%.

Over the one-year period from the 28 February 2017 to 28 February 2018, the MSCI Emerging Markets Asia Index has returned an impressive 33.1%.

The index covers large and mid-cap companies across nine emerging market countries, with the bulk of allocations currently to China (41.8%), South Korea (19.9%), Taiwan (15.7%) and India (11.3%).

Chinese holdings dominate the top two company constituents with Tencent Holdings and Alibaba taking up 7.7% and 5.3% weightings respectively. South Korean company Samsung is next in line with a 5.2% weighting, followed Taiwan Semiconductor with 5.1%.

Over the one-year period ending 28 February 2018, the index has returned an impressive 33.1%, outperforming the broader MSCI Emerging Markets Index‘s 30.5% return over the same time frame.

Since its inception in December 2000, the index has earned an 11.0% annualised return.

The ETF has been listed on the Deutsche Börse (ticker LCUA GY) and cross-listed on the London Stock Exchange (in USD with ticker LCAL and in GBP with ticker LCAS LN) and the Borsa Italiana (LCAS IM).

With a total expense ratio (TER) of 0.12%, the fund has the lowest management fee of all European-listed emerging market ETFs – not just of those tracking the MSCI Emerging Markets Asia Index but of all emerging market equity exposures. It is 8 bps lower than that of the Amundi ETF MSCI EM Asia UCITS ETF (AASG LN), which was previously the joint cheapest on offer with a TER of 0.20%.

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