London Stock Exchange welcomes Lyxor ETF
London Stock Exchange today welcomes Lyxor ETF, for the listing of two new income focused ETFs.
Lyxor is Europe’s second largest ETF issuer. They have been running ETFs since 2001, longer than any other European provider. They currently run over 200 ETFs, covering a wide range of equity, bond and commodity strategies.
Today, they are launching two new income products: the Lyxor FTSE UK Quality Low Vol Dividend (DR) UCITS ETF (QUID) and Lyxor FTSE US Quality Low Vol Dividend (DR) UCITS ETF (BUCK). Each ETF charges a TER of 0.19%: making these one of the lowest cost options for income seekers.
Lyxor has a strong track record for Smart Beta income. With €1.2bn in AUM, and €255m in new assets this year, Lyxor’s Global Quality Income ETF is one of Europe’s largest and fastest growing Smart Beta ETFs1. The new ETFs expand Lyxor’s range to global, European, UK and US equity markets.
Lyxor’s latest offering seeks out high quality, stable companies that can maintain dividend payments. Only stocks with the highest scores for quality, low volatility and yield factors are selected by the FTSE Russell indices. The UK version has a portfolio of 113 stocks and a current yield of 3.76%, whilst the US versions holds 151 stocks and yields 2.96% (Data correct as at May 2017). Stocks are capped at 5% to maintain diversification.
Matthieu Mouly, CEO of Lyxor ETF, said;
"The hunt for income is a challenge faced by many investors. With interest rates at record lows, equity income funds are an important component of many portfolios. We are launching these funds today to give investors a new option for equity income.
"When returns are low, it can be tempting to chase dividends from low quality companies, as a result taking on additional risk. To avoid the “yield trap”, we’ve been working with FTSE to find a strategy which optimises dividends without compromising on quality. Our ETFs are low cost, systematic and transparent – important qualities for any strategy."