Global Property and Fixed Income ETFs on Offer

Last week, db x-trackers launched an ETF tracking global real estate on the LSE and ETFlab launched a fixed income ETF on the Deutsche Börse

Morningstar ETF Analysts 29 March, 2011 | 4:54PM
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New Listings: March 21 - 25
db x-trackers launched an ETF tracking global real estate on the London Stock Exchange. The new ETF compliments the firm's existing ETFs which follow eurozone and developed Europe real estate indices. This fund tracks the performance of the FTSE EPRA/NAREIT Global Real Estate index. The index covers both developed and emerging markets, and is weighted by market capitalisation. The ETF charges a total expense ratio (TER) of 0.60%.

ETFlab launched a fixed income ETF on the Deutsche Börse. The fund tracks the performance of the iBoxx EUR Liquid Non-Financials Diversified index. The number of bonds included in the index is capped at 40, and the issuers must be headquartered in the eurozone, Denmark, Norway, Sweden, Switzerland or the U.K. Each bond must have an outstanding issuance of at least EUR 750 million, and the weighting of each bond is capped at 7.5%. Also, the index may not contain more than two bonds from any one issuer.

XACT launched two fixed income ETFs on the Nasdaq OMX Stockholm exchange. The XACT Obligation ETF tracks the performance of the Handelsbanken Sweden All Bond Tradable Index, a broad basket of 37 government, mortgage and municipal bonds from Sweden. The XACT Repo tracks the performance of the Riksbank's repo rate. The Obligation ETF has a TER of 0.19%, while the Repo ETF levies a TER of 0.14%.

Best and Worst Performers for the Week of March 21 - 25
Australian equity markets led the list of the week’s best performers. The S&P/ASX 200 rallied along with commodity prices. Silver was the best performing commodity during the week and natural gas prices got a boost from unseasonably cold weather across much of the U.S.

Another strong week for equities placed volatility-related ETNs and ETFs at the top of last week’s worst performers. Among commodities, coffee prices dipped as supplies increased thanks to higher-than-expected exports from Vietnam.

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.

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

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