Source enters US ETF market

Sep 16th, 2014 | By | Category: ETF and Index News

Source, one of Europe’s leading and most innovative exchange-traded fund providers, has crossed the Atlantic and entered the much-larger US ETF market.

Source enters US ETF market

Ted Hood, CEO of Source.

The firm’s US launch is spearheaded by a management team of ETF veterans led by co-founders Ted Hood, CEO and Peter Thompson, President.

They are joined by Executive Chairman Lee Kranefuss, an ETF pioneer and the architect of iShares, and Senior Advisor Richard Goldman, formerly CEO of Rydex and COO of Guggenheim Investments.

Earlier this year, Warburg Pincus, a global private equity firm focused on growth investing, acquired a majority stake in Source, joining the firm’s management team and five of the world’s largest investment banks—BofA Merrill Lynch, Goldman Sachs, J.P. Morgan, Morgan Stanley and Nomura—as shareholders.

“Entering the US is the next step in the growth of our global business,” said Thompson. “We see a tremendous opportunity to deliver market-driven, value-added products to American investors, and are excited about the opportunity to serve the US market.”

Source has an impressive five-year track record in the European exchange-traded product market. The firm’s diverse family of specialized differentiated equity, fixed income, commodity and alternative assets investment products—and partnerships with some of the most well-respected asset managers in the industry—has attracted more than $19 billion in AUM and more than $575 billion in investor trades since launching their first products in 2009.

“As a global independent ETF firm, we are unconstrained internally and free to partner with the world’s leading money managers and other providers of investment content, while still enjoying the support of the largest financial institutions and trading firms,” said Kranefuss. “These partnerships put Source in a unique position to offer investors access to investment strategies to serve their needs that were previously unavailable and give world class managers exposure to an untapped audience.”

Source’s first investment product for the American market, the Source Euro Stoxx 50 ETF (ESTX), scheduled to launch later this month, offers highly liquid exposure to the index of choice for European equity markets. The Euro Stoxx 50 Index is comprised of 50 of the largest companies domiciled in the Eurozone and is the primary hedging tool used by global trading desks.

Source has also filed with filed plans with the Securities and Exchange Commission to list a China A-shares ETF in the US, in partnership with Hong Kong-based CSOP Asset Management.

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