iShares, the exchange traded funds unit of BlackRock, has unveiled a new Ucits exchange-traded fund (ETF) that will track the shares of the Euro Stoxx 50 index on the London Stock Exchange.
The iShares Euro Stoxx 50 ex-financials Ucits ETF will offer investors access to eurozone equities whilst stripping out financial exposures, for example banks and insurance companies.
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The fund, which is a physically replicating fund with a total expense ratio of 0.20%, will invest in blue chip stocks of 12 eurozone countries while avoiding financial companies, such as banks and insurers.
The ETF, with an international security structure, can settle trades in a single pan-European location location thereby simplify the overall post-trade process while also helping to increase liquidity and reducing costs.
This initiative comes in response to a partnership between Euroclear and iShares in June this year.
Tom Fekete, head of product development for iShares EMEA said: "Eurozone financial stocks are likely to exhibit volatility in 2014 and this ETF provide a building block for investors to express their views, by either side-stepping the sector or specifically targeting it by adding other financials-focused funds or single stocks to their portfolios."
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By GlobalDataStephan Pouyat, global head of international markets, Euroclear said: "Simplifying the issuance process and providing uniform settlement practices regardless of trading venue will make it easier for investors to trade these ETFs. This will ultimately improve liquidity in the market, which should have a positive effect on processing costs for the end investor."
