Lyxor Starts Fundamental Index Methodology ETFs
Société Générale subsidiary Lyxor Asset Management has launched four new exchange-traded funds that offer access to the Fundamental Index methodology, an alternative index methodology to traditional market-cap weighted indices. The new ETFs are tied to FTSE RAFI indices, which cover major sectors of the U.S., Europe, euro zone and Japan, and aim to beat traditional market-weighted indices that are less volatile.
The Europe, euro zone and Japan Lyxor RAFI ETFs are the first to be listed on the London Stock Exchange.
The Lyxor ETF FTSE RAFI US 1000 includes the largest 1,000 U.S.-listed companies by fundamental value, chosen from the constituents of the FTSE USA All Cap Index, part of the FTSE Global Equity Index Series.
The Lyxor ETF FTSE RAFI Europe is made up of European stocks represented amongst the constituents of the FTSE RAFI Global ex-U.S. 1,000 Index, essentially 1,000 non-U.S.-listed companies with the largest fundamental value, chosen from the constituents of the FTSE Developed ex-U.S. Index.
The Lyxor ETF FTSE RAFI Eurozone is made up of each euro-denominated nation in the FTSE RAFI Developed ex-U.S. 1,000 Index. Constituents within the FTSE RAFI euro zone Index come from Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal and Spain.