Lyxor Launches Smart Beta ETF

September 09, 2014

Lyxor asset management has launched a new smart beta exchange traded fund, which tracks high value stocks and gives investors the ability to become increasingly brave or patient depending on their risk tolerance

The Lyxor UCITS ETF SG Global Value Beta costs 0.40 per cent and is based on the Société Générale Value Beta index, which aims to generate long-term performance.

The launch comes off the back of Lyxor’s ETF range based on the SG Quality Income strategies, which now has $500 million of assets under management.

Andrew Lapthorne said in a statement: “By combining the Brave and Patient Smart Beta value index, we believe the investor can get the best of both worlds, with full exposure to the value premium and the ability to become increasingly brave or patient depending on their risk tolerance. Building a portfolio mixing such types of risk Factor’s strategies is becoming increasingly popular as an alternative to diversifying in the traditional way, by asset class”.

According to a note from Société Générale’s Cross Asset research team, there are two types of value investors: patient value investors seeking to benefit from compounding above average dividend yields offered by quality companies, and brave value investors seeking to gain from a share price recovery in companies currently discounted by the market.

The new SG Value Smart Beta index, which like the SG Quality Income indexes is  developed by Andrew Lapthorne and Georgios Oikonomou, Global Quantitative Research Strategists at SGCIB, aims to track the performance of the “brave value investor” by investing in the 200 cheapest stocks on a sector relative basis in global developed markets.

 

 

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