Lyxor Asset Management has launched what it claims is the first exchange-traded fund (ETF) on the European market that aims to track the dollar-denominated S&P 500 Capped 35/20 Banks and Diversified Financials Select Index.
The Lyxor S&P 500 Banks Ucits ETF, launched on the London Stock Exchange and the Borsa Italia, will invest in the US banking sector, including investment banks, regional banks, brokerage firms, asset management companies and custodian banks.
Lyxor’s ETF range now covers the bank sectors of the US, the eurozone and Europe.
Adam Laird, Lyxor’s head of ETF strategy, said that there are currently good opportunities for investors in American banks as rising rates give the potential for higher margins.
“The sector could also get a shot in the arm by the US administration’s planned deregulation campaign,” he said.
“We launched this ETF to specialise in banks and investment, it excludes some of the less cyclical financial stocks held in other funds. This will be a good complement to our existing range of bank-focused ETFs.”
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