Lyxor has launched a new range of core ETFs with investment costs (total expense ratios) starting from 0.04% – the lowest cost in Europe.
The Lyxor core range is comprised of 16 funds covering the major equity markets (global, UK, Europe, US and Japan) as well as gilts and Tips on the fixed income side. Four new funds are being launched to complement 12 existing ETFs whose fees have been cut. The new funds are listing on the Deutsche Borse (21st March) and London Stock Exchange (22nd March). Focusing on quality and simplicity the range is physically replicated with no securities lending.
Low cost core equity is the foundation of the ETF market as roughly half of all ETF assets and inflows in 2017 went to mainstream equity ETFs. The focus on fees has intensified with pressure from regulators as well as scrutiny from the end investor. Fees on Lyxor’s Core ETF range are on average 40% lower than competitor products and the range features Europe’s lowest cost ETFs.
The new Core range has generated significant initial interest from a range of investors and third-party providers, such as Nutmeg.