ETF Times: November 29-December 3

Investors will be able to pay capital gains in stead of the higher income tax on Source ETCs in London, while new db x-trackers offer greater flexibility for investors in Madrid

Morningstar ETF Analysts 7 December, 2010 | 5:38PM
Facebook Twitter LinkedIn

ETF News
Source announced that all of its ETCs will gain UK reporting status. Essentially, this means that investors will pay the lower capital gains tax rate of 18% or 28% on any gains from holding the shares, instead of the potentially much higher income tax rates. ETF Securities also notes that all of its products are eligible for capital gains tax treatment. The favourable tax treatment is available for all ETCs, as long as they meet the reporting requirements.

New Listings
Deutsche Bank's db x-trackers has cross-listed ten additional ETFs on the Bolsa de Madrid, expanding its recent incursion into the Spanish ETF market to 21 ETFs. The new ETFs allow investors greater flexibility in meeting their asset allocation needs, as they track indices exposed to both developed and emerging equity markets, private equity, and even two short indices. Some of the indices that the ETFs track include the MSCI World, MSCI Japan, MSCI Russia Capped, and the EURO STOXX 50. The private equity index includes 25 of the most liquid listed private equity firms worldwide.

UBS launched three new ETFs on the Deutsche Boerse Xetra platform. One of the ETFs tracks the performance of the HFRX Global Hedge Fund Index, which offers exposure to the entire hedge fund universe, including strategies such as convertible arbitrage, distressed securities, and equity hedging. Weighting among the different strategies reflects the distribution of assets among hedge funds. It has a management fee of 0.60% annually. The other two ETFs track the MSCI Emerging Markets index, which offers exposure to companies from 21 emerging countries, encapsulating about 85% of the market capitalisation of those nations' equity markets. The 'A' share class ETF comes with a management fee of 0.65% annually, and the 'I' share class which focuses primarily on institutional investors comes with a management fee of 0.40% annually.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

About Author

Morningstar ETF Analysts  research hundreds of ETFs available to European investors. The Morningstar Rating for ETFs is based on a risk-adjusted performance measure.