INDEXCHANGE Investment AG, the HypoVereinsbank subsidiary which deals in Exchange Traded Funds (ETFs), will launch fourteen new Dow Jones STOXX 600 Europe sector ETFs on the Deutsche Borse on July 22. With the addition of these new ETFs Europe will for the first time surpass the US in terms of number of ETFs and listings. Europe will have 106 ETFs with 168 listings with assets under management of $8.5 billion. The US has 102 ETFs with 102 listings and $90.1 billion in assets under management.
The new ETFs will fully replicate the following STOXX 600 Europe sectors: Automobiles, Basic Resources, Chemicals, Construction, Cyclical Goods & Services, Energy, Financial Services, Food & Beverage, Industrial Goods & Services, Insurance, Media, Non-Cyclical Goods & Services, Retail and Utilities. The addition of these new ETFs to IndEXchange’s four existing STOXX 600 Europe sectors on Banks, Healthcare, Technology and Telecommunication they will cover the entire universe of the Dow Jones STOXX 600 at the industry level. The annual total expense ratio will be 50 basis points. Dividends will be paid annually.
“Due to the very high correlation of country indices, many investors are switching from a country oriented allocation to a pan-European sector oriented investment,” says Andreas Fehrenbach, Spokesperson for the INDEXCHANGE Executive Board. “For the first time, the INDEXCHANGE sector funds offer investors the option to realise any European investment strategy individually and in an easy manner. The funds represent a perfect vehicle for experienced investors to achieve an outperformance through the under-weighting or over-weighting of individual sectors as opposed to the entire market. And that without having to fall back on riskier single investments.”
Below are the Bloomberg and Reuters tickers for the complete family of sector ETFs:
Fund name Bloomberg Reuters Ticker Ticker
IndEXchange DJ STOXX 600 AutosEX SXAPEX GY SXAPEX.DE
IndEXchange DJ STOXX 600 Basic Resources EX SXPPEX GY SXPPEX.DE
IndEXchange DJ STOXX 600 BanksEX SX7PEX GY SX7PEX.DE
IndEXchange DJ STOXX 600 ChemicalsEX SX4PEX GY SX4PEX.DE
IndEXchange DJ STOXX 600 ConstructionEX SXOPEX GY SXOPEX.DE
IndEXchange DJ STOXX 600 Cycl Goods & Serv EX SX2PEX GY SX2PEX.DE
IndEXchange DJ STOXX 600 EnergyEX SXEPEX GY SXEPEX.DEIndEXchange DJ STOXX 600 Financial ServicesEX SXFPEX GY SXFPEX.DE
IndEXchange DJ STOXX 600 Food & BeverageEX SX3PEX GY SX3PEX.DE
IndEXchange DJ STOXX 600 HealthcareEX SXDPEX GY SXDPEX.DE
IndEXchange DJ STOXX 600 Indust Goods & ServEX SXNPEX GY SXNPEX.DE
IndEXchange DJ STOXX 600 InsuranceEX SXIPEX GY SXIPEX.DE
IndEXchange DJ STOXX 600 MediaEX SXMPEX GY SXMPEX.DE
IndEXchange DJ STOXX 600 Non-Cycl Goods & SerEX SXHPEX GY SXHPEX.DEIndEXchange DJ STOXX 600 RetailEX SX1PEX GY SX1PEX.DEIndEXchange DJ STOXX 600 TechnologyEX SX8PEX GY SX8PEX.DEIndEXchange DJ STOXX 600 TelecommunicationsEX SXKPEX GY SXKPEX.DEIndEXchange DJ STOXX 600 UtilitiesEX SX6PEX GY SX6PEX.DE
Separately, INDEXCHANGE is – in co-operation with the DAB-Bank – offering savings plans on Exchange Traded Funds. “The index funds are particularly suitable in the savings model section, as they often produce a better performance than actively managed products when compared long term. Besides, the cost-average effects typical for a savings plan are especially distinctive here “, says Fehrenbach.
“We are happy to acquire a very competent partner for ETFs in the area of savings plans”, adds Matthias Krner, spokesman for the DAB-Bank. The DAB-Bank is offering its clients savings plans with an issue surcharge reduced to 2.5%. Savings plans can be established from an investment amount from Euro 50-the custodianship account for the savings plan is offered free of charge. “With low investment amounts up to 500 Euro, the investor is better-off through an issue premium than an acquisition through the stock market,” says Fehrenbach. “Therefore, we decided to offer savings plans in a manner that is not typical for ETFs.”