Lyxor ETFs: Let's Get More Physical

In a move welcomed by Morningstar analysts, Europe's third largest ETF provider is switching more of its funds to a physical replication model 

Dimitar Boyadzhiev 9 November, 2015 | 10:19AM
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Lyxor is switching more ETFs from synthetic to physical replication in a move that will result in more than half of the firm’s ETF assets using physical replication.  

We welcome this move, which is part of an industry-wide trend, witnessed across Europe and especially in the UK, driven by investor preference for physical ETFs over their synthetic counterparts. At the same time, the cost of synthetic replication, which involved the use of swaps, has increased over the past few years due to new banking regulations, making physical replication a more efficient method in some markets.

Lyxor, Europe’s third largest ETF provider, began its switch to physical replication in 2012.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Lyxor Core Europe Stoxx 50 DR ETF Acc GBP17,738.83 GBP0.59Rating
Lyxor Japan Topix DR ETF Dist EUR A/I GBP12,455.81 GBP0.45Rating
Lyxor MSCI Europe (DR) ETF Acc GBP13,171.94 GBP0.60Rating

About Author

Dimitar Boyadzhiev  is a Passive Strategies Research Analyst for Morningstar