ETP provider Source is launching two products that track the new Stoxx International Exposure indices.
They are the Source Stoxx Eurozone Exporters Ucits ETF and the Source Stoxx Japan Exporters Ucits ETF.
Key features
- Both ETFs are available in currency-hedged and unhedged versions
- All four funds have a management fee of 0.35 per cent
- The Source Stoxx Eurozone Exporters Ucits ETF is being launched on Xetra in EUR, with a USD-hedged version on the LSE, while the Source Stoxx Japan Exporters Ucits ETF is being launched on the LSE, with a EUR-hedged version available on Xetra.
Peter Thompson, president of Source, said: “We identified a particular need from our investors to gain more targeted exposure to the topical themes of currency devaluation and quantitative easing; hence these indices focus precisely on those companies in the Eurozone and Japan that have a majority of non-domestic revenues.
“This could be especially valuable now with both the ECB and Bank of Japan using QE, offering the potential for weaker currencies that is likely to boost exporters’ earnings.”
Adviser view
Andrew Reeves, director of Northamptonshire-based The Investment Coach, said: “It sounds pretty niche.
“ETFs in their vanilla format are something I like, but it is hard to see where something like this would fit into one of my clients’ asset allocations.”
