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Please read the important information below before continuing to our website

The Lyxor ETFs on this website may be restricted for certain individuals or in certain countries pursuant to the national regulations applicable to those individuals or countries. It is therefore your responsibility to ensure that you are authorised to invest in the Lyxor ETFs on this website. 

 

If you are an investor in the United Kingdom, please go to www.lyxoretf.co.uk  

If you are an investor in the Netherlands, please go to www.lyxoretf.nl  

If you are an investor in Italy, please go to www.lyxoretf.it  

If you are an investor in Spain, please go to www.lyxoretf.es  

If you are an investor in Austria, please go to www.lyxoretf.at  

If you are an investor in Germany, please go to www.lyxoretf.de   

If you are an investor in Singapore, please go to www.lyxoretf.com.sg  

If you are an investor in Switzerland, please go to www.lyxoretf.ch  

If you are an investor in Belgium, please go to www.lyxoretf.be  

If you are an investor in Poland, please go to www.lyxoretf.pl 

If you are an investor in Norway, please go to www.lyxoretf.no

If you are an investor in Denmark, please go to www.lyxoretf.dk

If you are an investor in Luxembourg, please go to www.lyxoretf.lu

If you are an investor in Sweden, please go to www.lyxoretf.se

If you are an investor in Finland, please go to www.lyxoretf.fi

 

 

The Lyxor ETFs on this website are undertakings for collective investment in transferable securities (UCITS) (i) domiciled in France and approved by the Autorité des Marchés Financiers (AMF) or, (ii) domiciled in Luxembourg, approved by the Commission de Surveillance du Secteur Financier (CSSF) and authorised to market their units or shares in the French Republic in accordance with the notification procedure under Article 93 of Directive 2009/65/EC. Investors should note that the prospectuses of certain Lyxor ETFs under Luxembourg law that have been notified in accordance with this procedure are only available on the website in English. A French translation of these prospectuses can be obtained upon request by sending a letter to Lyxor International Asset Management (“Lyxor”) – 17 Cours Valmy, 92987 Paris La Défense, France.

 

The information on this website is not intended for persons or entities that are resident, located or registered in jurisdictions that are not authorised to distribute Lyxor ETFs. As a result, the information on this website does not constitute an offer or solicitation to buy or sell units or shares in these ETFs by anyone in any jurisdiction:

 

(a)   in which such an offer or solicitation is unauthorised;

(b)   in which Lyxor is not qualified to make such an offer or solicitation; or 

(c)   in which it is unlawful to make such an offer or solicitation.

 

In particular, the Lyxor ETFs on this website are not and will not be registered under the United States Securities Act of 1933, as amended. As such, they may not be offered or sold within the United States of America, except in specific cases where transactions are exempt from registration under the Securities Act. The ETFs listed on this website may not be sold to US citizens or transferred to the United States by any other means, unless this transaction is not subject to any specific registration under US law. 

 

Any person from a jurisdiction to which the above-mentioned restrictions apply should inform themselves of and observe these restrictions.

 

This website is intended for commercial purposes and is not regulatory in nature. Although the information provided has been drawn up on the basis of sources considered to be reliable, there is no guarantee that it is accurate, complete or relevant. Some of the information on this website is provided on the basis of market data collected at a specific time and may therefore vary over time. Lyxor advises investors to read the risk factors section of the prospectus and the key investor information document carefully. These documents can be found on the website.

 

The net asset value (“NAV”) of Lyxor ETFs may at any time be subject to considerable price fluctuations, which in some cases may lead to the loss of all of the capital invested. Investors should note that some ETFs may be sensitive to fluctuations in the exchange rate between their reference currency and that of the underlying index, as well as of the components of the underlying index.

 

Before investing in a Lyxor ETF, you should carry out your own risk analysis of the product from a legal, tax and accounting perspective, rather than basing your decision solely on the information provided. If necessary, you should consult your own advisers or any other qualified professional. 

 

Subject to compliance with the legal obligations by which they are bound, Lyxor or any entity within the same group shall not be held liable for any financial or other consequences of an investment in the product. 

 

 

By clicking on institutional or individual above, I confirm that I have read and understood the information provided herein, and that I am resident or registered in Luxembourg.

 

01 Dec 2017

Busting the five most common myths about  ETFs

 

With active managers gearing up for their annual “this’ll be our year” outputs, we thought it time to address the persistent speculation about the way ETFs influence markets and performance. Our latest ETF Research paper tackles the five most frequent concerns: 

1. ETFs are getting too big

In fact, the ETF footprint is still fairly small. In the largest market, the US, ETFs represent 7.6% of the equity market; in Europe it is even less, at 4.4%. As such, they can’t exert any real influence on the asset markets in which they operate.  

Could this change? There’s little evidence of “creep” so far. Between 2000 and 2016, ETFs’ aggregate ownership share of three popular US equity indices— the S&P 500, the Russell 1000 and the Russell 2000— only grew by around 0.4% per year. 

In the secondary market, ETFs based on the Euro STOXX 50 represent 2% of the cumulative average daily volume traded. Within bonds, the numbers are similarly inconsequential. 

 

2. ETFs increase correlations and harm diversification 

Our work with the ETF Research Academy to better understand the impact of ETFs on their underlying markets shows ETFs influence the aggregate levels of risk in the market, but don’t necessarily increase it.

ETFs don’t automatically cause higher volatility nor do they necessarily increase the tendency of stock prices to move in sync. A parallel can be drawn between the growth of ETFs and passive management and the decrease of return dispersion in the underlying markets over the last 20 years, but we don’t subscribe the view that one definitely caused the other.

Dispersion can be influenced by multiple factors other than index-related instruments, among them global volatility, futures and derivatives, or systematic strategies and algorithmic trading.

 

3. ETFs add to volatility 

How ETF traders affect the underlying index is a familiar debate. The effect ETF “noise traders” – less well informed investors – have on index volatility is relatively short-lived. Trading by more informed investors has a greater impact on financial markets, and plays a role in price discovery over the long run.

The percentage of bond issues held by ETFs is small, and ETF ownership of bonds tends to be associated with more liquid and less volatile underlying bonds. Research suggests ETF ownership may actually reduce the price volatility of constituents in the corporate bond market.

 

4. ETFs make markets less efficient 

New ETFs can help make markets more efficient if they are built the right way – and adding new ETFs to those already in issue can reduce systemic risk. Therefore, the overall level of risk of the market does not depend on the number of ETFs in existence or the size of their assets under management.

That said, ETF issuers can, via their design choices (index weight, methodologies, primary market liquidity), influence the overall riskiness of the market and their impact on market efficiency. Although market-cap indices increase the amount of macro-based information included in financial assets, ETFs on non-market cap weighted indices include a significant micro-based information part in the investment decision process and therefore contribute to pricing efficiency.

Assets in these kinds of ETFs are growing faster than the market overall. And we expect them to be one of the main drivers of ETF market growth in the future.  

 

5. ETFs increase market susceptibility to major drawdowns

Our research into the primary and secondary markets in Europe suggests assets are being traded less, so ETFs are being held for longer.  If they are, it reduces their potential impact on financial markets.

We know investors are concerned by this possible impact, especially when markets are under stress. Such periods of stress can be found (albeit infrequently) in the US, but are, so far at least, impossible to find in Europe. The key question then is will that change any time soon?

In our view, the answer is no - the markets are still too different. The ETF market in Europe may have doubled in the last four years, but it’s still four times smaller than in the US. There are also more checks and balances in place. There are other differences too, including the users of ETFs. In the US, usage is much more widespread among retail and hedge fund investors as well as institutions; we don’t see that in Europe yet.

Providers in Europe have to publish the value of the fund on a daily basis and also publish an indication of the NAV throughout the day (the iNAV). Meanwhile, exchanges such as Euronext also have measures in place to prevent trading from drifting too far from fair value. Some providers then add specific risk rules that go even further to try to limit any ETF impact. This is something investors should be aware of when making their selections.

Lyxor, for example, won’t allow any of its ETFs to be more than 2% of the free market float of the underlying pieces. And the volume of shares traded must not be more than 30% of the average daily trade volume of the underlying parts.

 

Read more

For a more comprehensive review of these five key questions, read our special report from our

   Head of ETF Research,

   Marlene Hassine Konqui 

  



Risk Warning 

THIS COMMUNICATION IS FOR ELIGIBLE COUNTERPARTIES OR PROFESSIONAL CLIENTS ONLY

Fund and charge data: Lyxor ETF, correct as at 17 November 2017.

This document is for the exclusive use of investors acting on their own account and categorized either as “Eligible Counterparties” or “Professional Clients” within the meaning of Markets in Financial Instruments Directive 2004/39/EC. These products comply with the UCITS Directive (2009/65/EC). Société Générale and Lyxor International Asset Management (LIAM) recommend that investors read carefully the “investment risks” section of the product’s documentation (prospectus and KIID). The prospectus and KIID are available free of charge on www.lyxoretf.com, and upon request to client-services-etf@lyxor.com.

The products mentioned are the object of market-making contracts, the purpose of which is to ensure the liquidity of the products on the London Stock Exchange, assuming normal market conditions and normally functioning computer systems. Units of a specific UCITS ETF managed by an asset manager and purchased on the secondary market cannot usually be sold directly back to the asset manager itself. Investors must buy and sell units on a secondary market with the assistance of an intermediary (e.g. a stockbroker) and may incur fees for doing so. In addition, investors may pay more than the current net asset value when buying units and may receive less than the current net asset value when selling them. Updated composition of the product’s investment portfolio is available on www.lyxoretf.com. In addition, the indicative net asset value is published on the Reuters and Bloomberg pages of the product, and might also be mentioned on the websites of the stock exchanges where the product is listed.

Prior to investing in the product, investors should seek independent financial, tax, accounting and legal advice. It is each investor’s responsibility to ascertain that it is authorised to subscribe, or invest into this product. This document is of a commercial nature and not of a regulatory nature. This material is of a commercial nature and not a regulatory nature. This document does not constitute an offer, or an invitation to make an offer, from Société Générale, Lyxor Asset Management (together with its affiliates, Lyxor AM) or any of their respective subsidiaries to purchase or sell the product referred to herein.

Lyxor International Asset Management (LIAM), société par actions simplifiée having its registered office at Tours Société Générale, 17 cours Valmy, 92800 Puteaux (France), 418 862 215 RCS Nanterre, is authorized and regulated by the Autorité des Marchés Financiers (AMF) under the UCITS Directive (2009/65/EU) and the AIFM Directive (2011/31/EU). LIAM is represented in the UK by Lyxor Asset Management UK LLP, which is authorized and regulated by the Financial Conduct Authority in the UK under Registration Number 435658. Société Générale is a French credit institution (bank) authorised by the Autorité de contrôle prudentiel et de résolution (the French Prudential Control Authority).

Research disclaimer 

Lyxor International Asset Management (“LIAM”) or its employees may have or maintain business relationships with companies covered in its research reports. As a result, investors should be aware that LIAM and its employees may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. Please see appendix at the end of this report for the analyst(s) certification(s), important disclosures and disclaimers. Alternatively, visit our global research disclosure website www.lyxoretf.com/compliance.

CONFLICTS OF INTEREST This research contains the views, opinions and recommendations of Lyxor International Asset Management (“LIAM”) Cross Asset and ETF research analysts and/or strategists. To the extent that this research contains trade ideas based on macro views of economic market conditions or relative value, it may differ from the fundamental Cross Asset and ETF Research opinions and recommendations contained in Cross Asset and ETF Research sector or company research reports and from the views and opinions of other departments of LIAM and its affiliates. Lyxor Cross Asset and ETF research analysts and/or strategists routinely consult with LIAM sales and portfolio management personnel regarding market information including, but not limited to, pricing, spread levels and trading activity of ETFs tracking equity, fixed income and commodity indices. Trading desks may trade, or have traded, as principal on the basis of the research analyst(s) views and reports. Lyxor has mandatory research policies and procedures that are reasonably designed to (i) ensure that purported facts in research reports are based on reliable information and (ii) to prevent improper selective or tiered dissemination of research reports. In addition, research analysts receive compensation based, in part, on the quality and accuracy of their analysis, client feedback, competitive factors and LIAM’s total revenues including revenues from management fees and investment advisory fees and distribution fees.

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