Lyxor has launched Europe's first Emerging Markets ex-China ETF.
Given China's size, high population and ongoing market liberalisation, Lyxor believes the country should play a bigger role in portfolios, and that it should now be considered as a separate, standalone allocation - one which dovetails nicely with a broad EM exposure which excludes the country.
The new Lyxor MSCI Emerging Markets Ex China Ucits ETF provides exposure to 25 emerging equity markets, including Brazil, South Korea and India, but excluding China. Investors can then invest in China separately with single-country ETFs, allowing for more precision in portfolio weighting.
Chanchal Samadder, head of Equities at Lyxor ETF said : "This new ETF allows investors to gain a broad exposure to some of the world's most dynamic developing countries and, at the same time, make their own independent allocations to China. We're proud to be the first to bring this exposure to the European ETF market, as we firmly believe it will become an important strategic benchmark for clients."
Lyxor Asset Management Group (€137.9 bn AuM) is wholly-owned directly or indirectly by Societe Générale.