Exchange traded fund provider Source has launched its EURO STOXX Optimised Banks UCITS ETF on the London Stock Exchange, which comes as part of an aggressive push to build out its European ETF business.
The ETF will offer invetors exposure to banks within the Eurozone, but is optimised so that it reduces exposure to illiquid stocks.
It will track the EURO STOXX Optimised Banks EUR Index (Net Return). The swap-backed ETF uses multiple counterparties, which is part of the Source business model and it has a total expense ratio f 0.30 percent.
Michael John Lytle, Chief Development Officer, said: ““The results of the European Central Bank’s Asset Quality Review have shed light on the health of the region’s banks as well as the broader European economy.
“For investors who want to increase their exposure to Eurozone banks, this ETF provides the opportunity to gain access quickly and efficiently. It is the second banking sector ETF that Source has listed on the LSE, following the Source STOXX Europe 600 Optimised Banks UCITS ETF, which differs because it includes UK banks. Both ETFs trade throughout the day and the holdings and counterparty exposures are published daily on our website, providing total transparency."
Most recently Source launched Europe’s first Nikkei 400 ETF. This year it has also brought to market the Source JPMorgan Macro Hedge Dual Vega Target 4% TR UCITS ETF that tracks U.S. market volatility and launched Europe’s first physically replicating Chinese A Share ETF in January.