The last few weeks have been unique in the European ETF market. It is rare that product issuers will all launch funds on the same index around the same time. But on 17 May, an exclusive 10 year agreement between Standard & Poor's and iShares came to an end. The agreement ensured iShares was the only ETF sponsor with the right to use the S&P 500 to underlie its ETFs.
The race to launch ETFs on the S&P 500 is already well underway, with Deutsche Bank, Lyxor Asset Management and HSBC unveiling their respective funds on the London Stock Exchange. In mainland Europe, Credit Suisse and Commerzbank have also released their S&P 500 ETFs. For more information click here. The simultaneous issuance of funds tracking the S&P 500 from a plethora of providers has highlighted the question of whether the market needs a multitude of ETFs on the same underlying index, and how investors can differentiate between them. Offering an ETF on one of the leading ind...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
