Ossiam has launched a new ETF on Xetra, aimed at offering investors access to the performance of most liquid Japanes companies with low variance.
The fund tracks the S&P/TOPIX 150 Index and aims to benefit from currency hedging the yen against the Euro.
In a bid to minimise volatility, stocks are chosen on the basis of historical volatility, as well as their correlation level, and weighted according to an optimisation process.
In order to ensure diversification, no single stock may be represented in the index by more than 4.5 percent, while individual sectors are limited to up to 20 percent of the portfolio.
The fund is Ucits compliant, has a total expense ratio of 0.65 percent and an accumulating distribution policy.