| Trend
Toward Global ETFs Continues
By IndexFunds.com Staff
December 12, 2000 |
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Barclays Global Investors (BGI) announced its plans
to launch a UK-based exchange-traded fund (ETF) that tracks the
new FTSE ExUK 100 Index. The FTSE ExUK 100 Index will be calculated
from December 14, and a full list of the constituent companies
will be available at the FTSE website
on December 15.
FTSE is an index provider set up jointly by the
Financial Times and the London Stock Exchange to manage
and expand stock exchange indexes in the United Kingdom.
BGI said that it plans to launch the ETF, called
the iFTSE ExUK, on December 18, 2000. The iFTSE ExUK will be listed
on the London Stock Exchange (LSE),
within extraMARK, under the ticker symbol IEUR.
The new FTSE ExUK 100 Index will be comprised of
the largest 100 companies in Europe (excluding the UK) by market
capitalization.
The iFTSE ExUK fund will have an annual expense
ratio of 0.50% and will disclose portfolio holdings daily.
The iFTSE ExUK is the UK's third ETF, joining the
iFTSE 100 and the iFTSE TMT, both of which are also managed by
BGI. The iFTSE 100 provides exposure to the UK's 100 largest companies,
while the iFTSE TMT contains UK-based technology, media, and telecommunications
companies.
ETFs traded on the London Stock Exchange
| ETF name |
Ticker symbol |
Underlying index |
Inception date |
Expense ratio |
| iFTSE ExUK |
IEUR |
FTSE ExUK 100 Index |
12/18/2000* |
0.50% |
| iFTSE TMT |
ITMT |
FTSE TMT Index |
10/17/2000 |
0.50% |
| iFTSE 100 |
ISF |
FTSE 100 Index |
4/28/2000 |
0.35% |
* pending regulatory approval
Source: Barclays Global Investors
"Many investors want exposure to Continental European markets, but
establishing cross border trading accounts and the resultant currency
risk make investing prohibitive," said John Demaine, Director
of iShares for BGI. "iFTSE ExUK meets this demand head on with
no currency risk and is available to all the customers of UK stockbrokers,
bringing with it the transparency, ease of access and value for
money."
