Vanguard cross-lists Euro Stoxx 50 ETF to SIX Swiss Exchange

Jan 16th, 2018 | By | Category: Equities

Sector & Thematic Strategy Briefing - Wednesday 29th March 2023 - The Berkeley, London Please join us for our annual sector and thematic investing event, featuring DWS Xtrackers, First Trust, MSCI, Redburn and Sprott Asset Management. Please register now if you would like to attend.

Vanguard has cross-listed the Vanguard Euro Stoxx 50 UCITS ETF (VX5E SW) on SIX Swiss Exchange, offering another access point for investors seeking exposure to mega-cap stocks in the eurozone.

Vanguard cross-lists Euro Stoxx 50 ETF to SIX

Vanguard cross-lists Euro Stoxx 50 ETF to SIX (file image)

VX5E has been listed on SIX in Swiss francs; however, the fund was initially rolled out on London Stock Exchange in pounds sterling and on Deutsche Börse in euros, both with the same ticker code.

The ETF charges a total expense ratio (TER) of 0.10%.

The underlying Euro Stoxx 50 Index covers 50 stocks from 11 eurozone countries: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain.

The index is weighted by free-float market cap, and each component’s weight is capped at 10% of the index’s total free-float market cap.

As of the end of November 2017, the index was dominated by exposure to equities listed in France (35.7%) and Germany (33.3%), with the next largest country exposures being the Netherlands (11.0%), Spain (10.2%) and Italy (4.9%).

The index is fairly well diversified at the sector level with the largest exposures being banks (15.4%), industrial goods & services (10.7%), chemicals (9.0%), personal & household goods (9.0%) and technology (7.3%) and healthcare (10.1%). It has delivered a return of approximately 10.1% over the past year.

Since the ETF’s launch at the end of October 2017, assets under management have grown to €86 million, undoubtedly aided by the strength of the Vanguard brand and distribution capability in what is an extremely crowded space in the market. Indeed, there are almost fifty Euro Stoxx 50-linked ETFs!

While the ten-basis-point fee on Vanguard’s product is lower than the 0.16% charged on the giant €9.4bn iShares Euro Stoxx 50 UCITS ETF (EUE LN), it is still double the cost of the joint-cheapest funds – the Source Euro Stoxx 50 UCITS ETF (SX5S LN) and the HSBC Euro Stoxx 50 UCITS ETF (H50E LN), each with a TER of just 0.05%. Their AUMs are €340 million and €140m, respectively.

Tags: , , , , , , , , , ,

Leave a Comment