18/03/2008 New alternative energy and water ETFs

Announced today the launch of two new ETFs, one investing in water and the other in new energy, issued by…

Lyxor Asset Management

Lyxor ETF New Energy (GBP) – LSE Code: LNEW

This is linked to the World Alternative Energy IndexCW. This is a market cap weighted benchmark with a cap at 10% that includes 20 stocks active in the alternative energy area. This includes:

  1. Renewable energy: Solar, wind and biomass. Energy efficiency: Better use of energy generation, which involves industries such as energy meters and supraconductors.

  2. Decentralised energy supply: Power generation in close proximity to the consumer, involving microturbines and fuel cells.

In 2007, the World Alternative Energy IndexCW grew by 52.52%, and its rolling three year growth is 146.85%. The Lyxor ETF New Energy (GBP) has a total expense ratio (TER) of 0.60% p.a.

Lyxor ETF World Water (GBP) – LSE Code: LWAT

This ETF is linked to the World Water IndexCW, which is cap-weighted and includes 20 stocks active in three key areas of water:

  1. Water infrastructure: Suppliers of pipes, pumps, valves and meters as well as various consulting firms.

  2. Water treatment: Suppliers of products and technology for the disinfection, filtration and desalination of water.

  3. Water utilities: Water suppliers and waste water treatment companies operate facilities and networks to safeguard the global water economy.

Stocks are weighted by a market capitalisation factor but in order to maintain an effective diversification, no stock can weight more than 10% (i.e. no stock can weight more than 10% in the benchmark). The Index is revised every six months and rebalanced every quarter. Between 5th June 2006, which was when the World Water IndexCW was launched, and 29th February 2008, the index grew by 4.28%. The Lyxor ETF World Water (GBP) has a total expense ratio (TER) of 0.60% p.a.

All of Lyxor’s new LSE-listed ETFs are also available in USD.

Both the WAEXcw and the WOWAXcw are complied by Sustainable Asset Management (SAM) and calculated by Dow Jones Indexes. The indices are rebalanced every quarter and an index component review takes place every six months. -Lyxor

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