Paris headquartered Lyxor launched the first currency-hedged ETF share classes on Euro Stoxx 50 index, on 17 February. It has a total expense ratio of 0.20% per annum.
Lyxor said that these hedged ETFs, Lyxor Ucits ETF Euro Stoxx 50 Monthly Hedged C-USD and Lyxor Ucits ETF Euro Stoxx 50 Monthly Hedged C-GBP, are meeting investors’ needs “in an environment where monetary policies’ misalignment has contributed to an increase in currency volatility.”
Fluctuations in foreign-exchange rates can affect the performance between the index returns in its local currency and the returns of a non-hedged ETF listed in a different currency.
Arnaud Llinas, Lyxor’s head of ETFs and Indexing, commented: “Lyxor is always looking for new investment opportunities to meet investor needs and has expanded its ETF range accordingly. Our currency-hedged ETFs tracking the Euro Stoxx 50 Index therefore offer exposure to European equities, while mitigating the fluctuations of the Euro against the listing currency.”
Lyxor has currently $6.5bn (€5.7bn) of assets under management on the Euro Stoxx 50 index, covering 50 stocks from 12 Eurozone countries.