AXA Investment Managers To Launch Exchange-Traded Fund At Euronext
NEW YORK (Apr. 25, 2001) — Exchange-traded funds are gaining favor among investors in Europe. Now for the first time, European investors will be able to buy or sell exchange-traded funds linked to the performance of a global blue-chip index. Dow Jones Indexes has signed a license agreement with AXA Investment Managers, under which the European group will list an exchange-traded fund based on the Dow Jones Global Titans 50 index.
Mike Petronella, Managing Director of Dow Jones Indexes said: “Low component turnover, a limited number of index components and high liquidity makes the Dow Jones Global Titans 50 an ideal underlying for an exchange-traded fund. Through the AXA Investment Managers’ fund European investors, like their U.S. counterparts, will be able to buy 50 of the world’s largest and most important companies as a single security.”
Timothy Ryan, Head of Quantitative Research and Management of AXA Investment Managers said: “We chose the Dow Jones Global Titans 50 to offer European investors 50 of the world’s leading multinational corporations. This is the first global index to be published 24 hours a day. And just before we issued our EasyETF GLOBAL TITANS 50, the index was used as the basis for a futures contract.”
AXA Investment Managers expect their new series called EasyETF to begin trading at Euronext on April 25th.
Exchange-traded funds are “baskets” of securities similar to a mutual fund, except that they trade like individual stocks. Most of them are “index funds” that track the performance of a specified index for a country, a region or a sector. These investment vehicles are very popular in the United States and Canada - and are becoming so in Europe - because investors find buying or selling diversified portfolios of securities in a single transaction to be cost-effective and efficient.
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