Lyxor Asset Management and Solactive have announced the Lyxor Fed Funds US Dollar Cash Ucits ETF, aimed at offering investors access to the US federal funds rate.
The fund, which used the Solactive Fed Funds Effective Rate Index as underlying, was listed on Borsa Italiana today and is set to list on London Stock exchange on the 10th of July.
The EUR and GBP listings of the fund offer investors exposure to USD with a carry equal to the capitalised Fed Rate. Investors already managing liquidity in USD can gain exposure to the Fed Rate via the USD listing on the London Stock Exchange.
Arnaud Llinas, head of Lyxor ETFs and Indexing, added: “Lyxor which is continuously expanding its fixed income range, now makes available a new solution for investor’s USD liquidity management needs, through an ETF. We are pleased to further develop our cooperation with an index provider such as Solactive, in order to bring with this product an efficient exposure to the total return of a USD deposit paying the Fed Rate.”