The French ETF provider Lyxor launched two infrastructure products, the Lyxor FTSE USA Core Infrastructure Capped and the Lyxor FTSE Developed Europe Core Infrastructure Capped in to the market.
Fund management industry is aimed at companies that can benefit from massive investment needs in transport, energy or telecommunications. The underlying indices comprise 64 companies from the US and 33 companies from the developed European countries, which generate at least 65% of their revenues in the transport, energy and telecommunications infrastructures.
In order to avoid value traps and to reduce susceptibility to interest rate fluctuations, providers are limited in both indices. Lyxor promises a return of up to 2.95% on the US infrastructure fund and up to 4% on the European infrastructure fund. The total cost ratio in both cases is 0.5%.
“Infrastructure investments are often able to generate steady, steady earnings for investors,” says Stefan Kuhn, head of Lyxor’s ETF business in Germany. “Due to the long-term nature of infrastructure projects, yields are also less dependent on short market cycles and largely immune to inflation developments.”
