Lyxor launches two infrastructure ETFs

ETFsParis-based asset management firm Lyxor has launched two infrastructure ETFs.

The firm says the pair of Ucits infrastructure ETFs would give investors yields of up to 2.95% and 4.06%, from US and European companies respectively.

Both the Lyxor FTSE USA Core Infrastructure Capped Ucits ETF and the Lyxor FTSE Developed Europe Core Infrastructure Capped Ucits ETF will track FTSE Russell indexes and have a total expense ratio (TER) of 0.50%.

A recent report by PwC suggested that global infrastructure spending could grow to more than $9 trillion (€7.7 trillion) per year by 2025.

The FTSE Core Infrastructure Indexes provide exposure to 64 US or 33 developed Europe companies that derive at least 65% of their revenue from the development, ownership, operation, management or maintenance of transport, energy or telecommunications infrastructure.

The indices specifically limit exposure to utilities in order to avoid value traps and reduce rate sensitivity.

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