From a press release issued by Nyse Euronext...
Lisbon, December 13, 2010 –NYSE Euronext is pleased to announce the listing of the ESAF ETF (Exchange Traded Fund) on the NYSE Euronext Iberian index™.
As a result of its listing and trading on NYSE Euronext Lisbon regulated market, the ESAF NYSE Euronext Iberian ETF offers both retail and institutional investors an economical, flexible, secured and transparent exposure to the returns of 30 Portuguese and Spanish Blue Chip companies.
“The launch of an ETF on the NYSE Euronext Iberian Index™ is proof of the value of this benchmark, while incrementing its quality as a measurer of the performance of the Iberian market”, said Miguel Geraldes, Head of Cash Market & Listing, NYSE Euronext Lisbon. “As a leading Iberian institution, ESAF will play a key role in the expected growth of ETF use in the region,” he added.
“With this new initiative, the ETFs listed on NYSE Euronext now offer access to the Iberian region, providing new investment opportunities to the growing number of users,” said Pedro Fernandes, European Head of ETFs, at NYSE Euronext.
“The launch of this ETF is the recognition of the growing importance that this segment is gaining with the investors. It’s an additional challenge that just confirms innovation as being one of ESAF’s most important growth strategies”, referred Pedro Arbués, Investments Manager at ESAF – Espírito Santo Activos Financeiros.
ETFs or trackers are open-end investment funds listed on a stock exchange and tradable in the same way as an individual security. An ETF closely follows or tracks a particular benchmark index, seeking to replicate the performance of the index and offering flexible, low-cost exposure to entire markets or market segments in just one easy transaction. They also combine the simplicity of equities with the diversified risk of investment funds. A further benefit is the low level of management fees associated with this type of passive investment.
NYSE Euronext’s ETF segment has experienced phenomenal growth over the past few years. 503 ETFs are currently traded on NYSE Euronext’s regulated European markets, with over 300 underlying indices including an extended range of assets and strategies, offering investors a variety of investment choices. Since 2004 the number of ETFs listed on NYSE Euronext has more than quadrupled, illustrating the continuous innovation engineered by 16 issuers on this segment.
About Iberian Index:
The NYSE Euronext Iberian Index™ consists of 30 stocks, the 20 most liquid companies listed on Bolsa de Madrid and the 10 most liquid companies listed on Euronext Lisbon. The stocks are weighted according to their free float market capitalization with a maximum of 10% per stock. The index is rebalanced semi-annual on the third Friday of March and September.