PowerShares Source lists Europe small-cap ETF in Italy; PIR compliant

Nov 4th, 2017 | By | Category: Equities

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PowerShares Source has listed the Source STOXX Europe Small 200 UCITS ETF (SDJSML IM) onto the Borsa Italiana. The ETF, which meets the requirements of Italy’s new PIR tax-exempt savings plan, gives exposure to small-cap equities from developed markets in Europe.

PowerShares Source cross-lists Europe small cap ETF in Italy

The ETF qualifies for the PIR savings plan, potentially eliminating capital gains tax on holdings.

The ETF tracks the STOXX Europe Small 200 Index, which is derived from the STOXX Europe 600 Index and provides exposure to 200 small cap stocks from Austria, Belgium, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom.

The index has returned 17.5% in the 12 months to 14 November 2017.

The listing on Borsa Italiana means investors can use the fund to take advantage of the recently introduced PIR tax exemption laws in Italy. Under these rules, investments are exempt from the 26% tax on capital gains providing at least 70% of the portfolio is issued by EU countries with an Italian branch and 30% of the portfolio consists of SMEs.

In addition, investments must be held for a minimum of five years and investors must save less than €30,000 per year.

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