Source, one of Europe’s leading providers of exchange-traded products, has cross-listed four ETFs on Deutsche Börse, lifting the provider’s presence on the German exchange to 53 products.
Deutsche Börse’s ETF segment now comprises a total of 1,032 ETFs, with an average monthly trading volume of around €10 billion.
The four ETFs, all of which are already available on the London Stock Exchange, include two smart beta equity strategies, developed in partnership with Man GLG, and a pair of US energy infrastructure ETFs.
The Source Man GLG Asia Plus UCITS ETF (MPFA) and Source Man GLG Continental Europe Plus UCITS ETF (MPFC) enable investors to participate in the active, rules-based strategy approach of hedge fund manager GLG Partners, a division of Man Group.
The strategy encapsulates the recommendations of around 65 sell-side brokers to uncover stocks with alpha potential. The objective is to develop a liquid and widely diversified long-only equity portfolio with the potential for generating higher returns than their regional benchmarks. The Asia fund provides exposure to equities in Asia ex Japan and Australasia, while the Continental Europe fund provides exposure to the broad Europe ex UK equity market.
The two energy infrastructure ETFs enable investors to participate in the performance of US energy master limited partnerships (MLPs). Both ETFs track the same index, the Morningstar MLP Composite Index, which covers 97 percent of market capitalisation of all energy MLPs traded in the USA, although their distribution policies differ. The Source Morningstar US Energy Infrastructure MPL UCITS ETF (A) (SMLP) is a dividend accumulating fund, whereas the Source Morningstar US Energy Infrastructure MPL UCITS ETF (B)(SMLD) is a dividend distributing fund.
Commenting on the listings, Michael John Lytle, Chief Development Officer at Source, said: “As European investors have become more familiar with ETFs in recent years, we have witnessed an increase in interest. They are now looking to ETFs to fulfil a greater number of needs in their portfolios, including niche investments where ETFs are often the first to market.”
He added: “Two of the new listings are the result of partnering with Man GLG and these funds aim to capture the best broker ideas within an ETF structure. We are also offering our Source Morningstar US Energy Infrastructure MLP UCITS ETF, which provides exposure to the massive transformation taking place in the US energy landscape.”
Following these latest additions, Deutsche Börse’s ETF segment now comprises a total of 1,032 ETFs, with an average monthly trading volume of around €10 billion, making it one of Europe’s foremost trading venue for ETFs.