Stock market operator Nasdaq says it is going to actively target IFAs as part of its marketing campa...
Stock market operator Nasdaq says it is going to actively target IFAs as part of its marketing campaign to promote its new exchange traded fund (ETF) product for European investors.
The exchange today officially launched its new ETF, EQQQ, for those interested in buying into a basket of the biggest growth stocks listed on the US exchange.
The EQQQ ETF mimics the existing QQQ ETF, the world's biggest, but should be more tempting to European investors as it is based in Ireland and sold in Euros, according to Nasdaq chief executive officer for financial products John Jacobs.
"ETFs can be held in an ISA account, the new product offers intraday trading values, and it offers a low-cost way of buying into the bigger Nasdaq stocks," he says.
EQQQ will buy a basket of the biggest Nasdaq stocks, offsetting the perceived risk of tech companies such as Microsoft against the non-tech components such as coffee chain Starbucks.
Jacob says he believes the product offers a more efficient way of investing in top US securities than an equivalent US specialist investment trust, although he admits he does not have the information to hand to make a proper comparison.
However, he is sure that demand for the product exists, saying it was demand driven in the first place and the only reason it took so long to establish was tracking a path through various local tax laws within the EU.
"EQQQ was demand driven. We don't time the market, but we are in this for the long haul. We have had more requests to bring ETFs to Europe as the bear market has gone on and we are bullish about the future of ETFs."
"In terms of measuring the success of EQQQ we will look at what happens over five years rather than the next twelve months."
It took two years to launch QQQ in the US, Jacobs adds, but once up and running the exchange made extensive use of financial advisers to explain the advantages to US retail investors.
And they in turn responded positively, driving the product into top place out of the world's 262 current ETFs valued collectively at more than $120bn.
Nasdaq has already lined up Lehman Bros., Madoff Securities, Goldman Sachs and Merrill Lynch as "authorised participants" in EQQQ, with Berliner Effektengesellschaft and Madoff Securities acting as market makers for the product on the Nasdaq Europe exchange.
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