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Lyxor Switches Russia ETF Benchmark
By Staff | 20 March, 2012

Lyxor has switched the underlying index tracked by its only Russia ETF from the Dow Jones RusIndex Titans 10 to the Dow Jones Russia GDR Index, which was launched today.

The new index measures the performance of the largest Russian Global Depository Receipts (GDRs) traded on the London Stock Exchange. GDRs are local securities representing ownership in shares of foreign companies—they are issued by a depositary bank that holds the underlying shares.

The new benchmark covers a broader part of the Russian market than the previously tracked index: the Dow Jones Russia GDR Index includes all eligible securities within the top 82.5 percent of the cumulative float-adjusted market capitalisation, whereas the Dow Jones RusIndex Titans 10 is limited to 10 companies.

Nizam Hamid, Head of ETF Strategy at Lyxor said: “The new index combines both broad market coverage and liquidity, which are important elements when creating an ETF.”

To control portfolio concentration risk, the benchmark limits individual component weights to 20 percent. However, as at February 29, over 60 percent of its holdings were Russian energy companies.

The Lyxor ETF Russia has assets under management of around €1.1 billion.

The euro-denominated version of the Lyxor ETF Russia is listed on NYSE Euronext, Deutsche Boerse, Borsa Italiana and Bolsa de Madrid.




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