Morningstar and Euronext launch new Europe equity indices

Aug 1st, 2017 | By | Category: ETF and Index News

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.


Morningstar has teamed up with Euronext to launch two new indices, the Morningstar Eurozone 50 Index and the Morningstar Developed Markets Europe 100 Index, providing exposure to large-cap European equities. The European blue-chip equity indices are designed to be competitive, low-cost alternatives to existing widely-followed products.

Morningstar and Euronext launch new large-cap Europe indices

The new indices will be made available to market participants for benchmarking at no cost.

The indices may be used by market participants (asset managers, brokers, banks and trading desks) as benchmarks or by product developers as the underlying indices for investment products such as ETFs. The new indices are part of Morningstar’s Open Indexes Project, which involves over 100 of Morningstar’s equity indices, including style, sector and region/country specific indices, being made available to the investment community for free.

The Morningstar Eurozone 50 Index tracks the largest 50 stocks from the Morningstar Eurozone Index. Sector weights in the Morningstar Eurozone 50 are capped at a maximum of 4% higher than the corresponding sector weight in the parent index. The index is rebalanced quarterly and features buffer rules to reduce turnover.

The index offers a low-cost alternative to the popular Euro Stoxx 50 Index, the leading benchmark for blue-chip supersector leaders in the eurozone. The largest Europe-listed ETF to track the Euro Stoxx 50 is the iShares Euro Stoxx 50 UCITS ETF (Xetra: SX5EEX) which has €9.1 billion in AUM and a total expense ratio (TER) of 0.16%.

The Morningstar Developed Markets Europe 100 Index uses the same methodology to select the largest 100 stocks from the Morningstar Developed Markets Europe Index.

The largest ETF listed in Europe that tracks a Morningstar index is the Source Morningstar US Energy Infrastructure MLP UCITS ETF (LON: MLPS) which has $725 million in AUM and has a TER of 1.25%, comprised of a 0.50% management fee and a 0.75% swap fee.

Tags: , , , , ,

Leave a Comment