Lyxor’s 'new generation' of risk-controlled ETFs

Risk1Lyxor Asset Management launched two risk-balanced exchange-traded funds (ETFs) this week that arrange their component assets according to risk.

Tracking “a new generation of smart indices”, the ETFs were listed on NYSE Euronext Paris.

Lyxor said the behaviour of equity markets over the past decade had made it increasingly important for investors to reduce risk concentration and increase diversification, and so its smart index funds offered a more efficient and less volatile alternative to traditional market cap-weighted indices.

The funds are the Lyxor ETF Smartix Euro iStoxx 50 Equal Risk fund, and the Lyxor ETF MSCI World Risk Weighted fund.

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