FTSE licences an ETF issuer with the FTSE Emerging EMEA 40 Index to launch new product


FTSE Group (“FTSE”), the award-winning global index provider, announces the licensing of global ETF provider, Source, to use the FTSE Emerging EMEA 40 Index as the basis of a new Exchange Traded Fund (ETF). The FTSE Emerging EMEA 40 Index enables investors to gain market exposure to the emerging EMEA region and joins Source’s existing FTSE-linked ETFs, tracking the FTSE 100 and FTSE 250 indices. The new ETF launches on the London Stock Exchange today, joining the world’s largest range of emerging markets focused exchange products1

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The FTSE Emerging EMEA 40 Index is a tradable index, representing equity performance across 40 of the largest and most liquid stocks within emerging countries from Europe, Middle-East and Africa (EMEA) as classified within FTSE’s leading All World-Index Series. Using FTSE’s globally recognised index design standards, the index ensures a maximum of 10 stocks per country, reducing the risk of over-exposure in any one country. A buffer mechanism is also in place during the semi annual reviews, to reduce index turnover.

The Index has a 6 month average value traded liquidity screen to enhance its tradability. Over a 12 month period the FTSE Emerging EMEA 40 Index has achieved a 34.9% return, outperforming both its All-World Index Series equivalent – the FTSE Emerging EMEA Index with 31.8% returns and FTSE’s flagship Index – FTSE All-World Index with 28.8% return (FTSE Group, data as at 31 May 2011).

Tony Raw, Managing Director for Global Sales, FTSE Group, said, “We are delighted that Source has selected the FTSE Emerging EMEA 40 Index as the basis of their new ETF, enabling investors to gain exposure to this market. FTSE’s expertise in building transparent, liquid and rules-based indices, which now account for US $61.4 billion in global AuM2, continue to prove highly attractive to issuers of ETFs”.

“In the dynamic emerging markets, it’s not just a question of providing access”, said Source CEO, Ted Hood. “We also need to give investors the ability to trade in and out quickly and efficiently. By tracking the FTSE Emerging EMEA 40 Index, our Source ETF can combine liquidity and efficiency with access to the potential of this exciting region.”

Pietro Poletto, Head of ETFs and ETPs at London Stock Exchange Group, said, “We are delighted to welcome Source’s ETF to our markets today, which will offer investors exposure to an innovative new index which tracks significant emerging markets stocks, the FTSE Emerging EMEA 40. The London Stock Exchange is a world leader in emerging markets ETFs, hosting more such products than any other global exchange, and today’s listing further strengthens that position.” 

Source: ETFWorld –  FTSE

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