From 31 March 2014, in addition to passive ETFs that track the prices and returns of underlying indices, it will also be possible to list and trade active ETFs on SIX Swiss Exchange. With active ETFs, the composition of the fund is optimized on an ongoing basis. As the first…
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issuer, Swiss & Global Asset Management is offering eleven active ETFs for trading on SIX Swiss Exchange.
Exchange traded funds (ETFs) are funds that are traded over an exchange and do not have maturity caps. It has been possible to trade passive ETFs on SIX Swiss Exchange for more than 10 years now.
The underlying asset that the passive ETF is based on is comprised of one or more equity, bond or commodities from one or more countries. The index is based on a rule book, which defines the index and the portfolio adjustments. The composition of an ETF is continuously adjusted to the underlying index and is therefore transparent at all times. At present, it is possible to trade 923 passive ETFs on SIX Swiss Exchange. In 2013, ETF trading turnover on SIX Swiss Exchange reached CHF 90,728 million. This represents a market share of around 15% in Europe.
Now it is also possible to list and trade active ETFs on SIX Swiss Exchange in the standard for collective investment schemes. A portfolio manager uses an active ETF to actively optimize the composition of the fund on an ongoing basis by buying or selling selected equities or other securities. This allows the portfolio manager to respond immediately to market trends and utilize opportunities to generate a profit. In each case, he aims to outperform the benchmark.
With active ETFs, investors also benefit from the advantages of on-exchange trading, such as security, transparency, continuous trading and pricing by market makers. Issuers must calculate the indicative net asset value (iNAV) on a regular basis and send this to SIX Swiss Exchange. They must also notify SIX Swiss Exchange of the current portfolio composition on a daily basis. Issuers must also publish the calculation method for the iNAV and, with a four-week delay, the complete portfolio composition on their own website.
To make it easier to distinguish between ETFs, SIX Swiss Exchange on its website differentiates clearly between actively and passively managed ETFs. Moreover, the core data of each ETF specify whether the product is actively or passively managed. In addition, it is possible to search for and select products by their mode of management.
As the first issuer, Swiss & Global Asset Management is offering eleven active ETFs for trading on SIX
This includes the following products:
Product, Trading currency – ISIN
Julius Baer Smart Equity UCITS ETF Asia, USD – LU0747924487
Julius Baer Smart Equity UCITS ETF Asia, CHF – LU0747924644
Julius Baer Smart Equity UCITS ETF Asia, EUR – LU0747924560
Julius Baer Smart Equity UCITS ETF Emerging Markets, USD – LU0747924057
Julius Baer Smart Equity UCITS ETF Emerging Markets, CHF – LU0747924214
Julius Baer Smart Equity UCITS ETF Emerging Markets, EUR – LU0747924131
Julius Baer Smart Equity UCITS ETF Europe, CHF – LU0747923836
Julius Baer Smart Equity UCITS ETF Europe, EUR – LU0747923752
Julius Baer Smart Equity UCITS ETF World, USD – LU0747923083
Julius Baer Smart Equity UCITS ETF World, CHF – LU0747923323
Julius Baer Smart Equity UCITS ETF World, EUR – LU0747923240