Euronext further expands its ETF offering
Amsterdam, 16 October 2014: Euronext is growing its ETF business by welcoming three new Exchange Traded Funds (ETFs) issued by Vanguard, one of the world’s largest investment management companies. The ETFs provide investors with international diversification across North America, the developed world, and developed Europe excluding the UK. The new products are available for trading on the Amsterdam market as of today.
The Vanguard FTSE North America UCITS ETF, Vanguard FTSE Developed Europe ex-UK UCITS ETF and Vanguard FTSE Developed World UCITS ETF will enable investors to construct a more diversified equity portfolio. With the addition of these products to its existing range of ETFs, Euronext currently has 611 ETFs listed on its markets.
Benjamin Fussien, Head of ETFs & Investment Funds at Euronext, said: "Euronext is one of the leading venues for ETFs in Europe, with over 700 listings on our markets, including cross listings. We are delighted that these new products from Vanguard further strengthen and complement our existing ETF offering, in line with our strategy of providing investors with the most innovative and diverse range of ETFs.”
Wim van Zwol, Vanguard head of institutional sales, Northern Europe, said: “Dutch investors increasingly value the low costs, liquidity and transparency of ETFs and we continue to grow in the Netherlands. As a pioneer of high-value, low-cost investing, Vanguard is committed to offering a complete, broadly diversified ETF and mutual fund line-up so investors can construct globally diversified portfolios at extremely low cost.”
To celebrate the listing, Vanguard opened trading at Euronext Amsterdam today.
The European ETF industry has recorded exceptional growth to date and continues to present significant opportunities. Euronext’s is one of the leading platforms in Europe for ETF listing and trading, counting close to 700 listings of almost 600 ETFs on its four markets by the end of H1 2014. In the same period, the average ETF assets under management (AUM) at Euronext totalled €187.2 billion, an increase of 19.8% versus the same period in 2013.
ETFs are open-end investment funds that are listed on an exchange and continuously traded in the same way as a normal share. In general, an ETF is linked to a benchmark index and aims to closely follow its performance. ETFs combine the simplicity of equities with the diversified risk of investment funds, and offer flexible, low-cost exposure to entire markets or market segments through a single transaction. The low level of management fees associated with this type of passive investment is a further benefit of ETFs.