Three new ETFs from L&G on Xetra: access to world-leading brands, Indian government bonds and a diversified commodity investment
Three new ETFs from L&G on Xetra: access to world-leading brands, Indian government bonds and a diversified commodity investment
Since Monday, three new exchange-traded funds issued by Legal & General Investment Management have been tradable on Xetra and the trading venue Börse Frankfurt.
For the first time, the L&G Global Brands UCITS ETF offers an investment in a portfolio of companies representing the world's leading brands across a variety of industries. These include companies like Alphabet, Amazon, Apple, Microsoft, and Tesla. From an industry perspective, companies from the IT, finance and healthcare sectors account for the largest share. There are currently 81 companies represented in the portfolio, with the weighting of one stock limited to 5 per cent. Companies that violate the UN Global Compact or are associated with controversial topics will be excluded.
The L&G India INR Government Bond UCITS ETF gives investors access to Indian Rupees (INR)-denominated government bonds issued by the central government of India and approved for non-resident investments under the Fully Accessible Route (FAR). The bonds must have a remaining maturity of at least two-and-a-half years and a remaining maturity of at least six months at the end of each month. These are fixed-rate government bonds or zero-coupon bonds.
The L&G Multi Strategy Enhanced Commodities UCITS ETF EUR-Hedged Acc offers a broadly diversified commodity investment via futures contracts on currently 24 individual commodities from the energy, industrial and precious metals, livestock, and agricultural commodities sectors. In futures contracts, the roll-over mechanism creates roll returns that can have a positive or negative impact on performance. This is due to the fact that futures contracts have a limited maturity and must be exchanged for the next maturing futures contract before they expire. The ETF also applies a hedging strategy to minimise the exchange rate risk between the base currency of the index components and the euro.
Name | Asset class | ISIN | On-going charges | Distribution policy | Reference index |
L&G Global Brands UCITS ETF | Equity ETF | 0.39 per cent | accumulating | Solactive Brand Finance Global Brands Index | |
L&G India INR Government Bond UCITS ETF | Fixed Income ETF | 0.39 per cent | accumulating | J.P. Morgan India Government Fully Accessible Route (FAR) Bonds Index | |
L&G Multi Strategy Enhanced Commodities UCITS ETF EUR-Hedged Acc | Commodity ETF | 0.35 per cent | accumulating | Barclays Backwardation Tilt MultiStrategy Capped Total Return Index |
The product offering in Deutsche Börse's XTF segment currently comprises a total of 2,087 ETFs. With this selection and an average monthly trading volume of around €16 billion, Xetra is the leading trading venue for ETFs in Europe.