Stoxx Limited has licensed the Eurostoxx 50 to Yuanta Securities Investment Trust Company (Yuanta SITC), the largest mutual fund company in Taiwan, to serve as the basis for an exchange-traded fund (ETF).
Yuanta SITC’s product focus has evolved from the home market to Greater China, Asia, US and Europe, and the firm is aiming at providing a more holistic set of ETFs to fulfil the needs of investors, both retail and institutional, said Julian Liu, president and chief executive officer of Yuanta SITC.
“The outlook for the European economy is getting brighter and the upside potential is quite promising as well,” said Liu. “We believe it’s a very good time to introduce the Eurostoxx 50 Index to the general public in Taiwan. The existing Yuanta network in Asia has expanded to China, Thailand, Indonesia and Korea through wholly owned, partnership or JV We will soon plan to cross-list ETFs on Stoxx’s indices to other exchanges in these regions.”
The Eurostoxx 50 index represents 50 super-sector leaders in the 12 euro zone countries Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxemburg, the Netherlands, Portugal and Spain. The index is weighted by free-float market cap, and each component’s weight is capped at 10% of the index’s total free-float market cap.
Yuanta Securities has marketed over 400 equity-linked securities (ELS) in South Korea of which 54 featured the Eurostoxx 50 index. In Taiwan, Yuanta Securities has marketed 110 products including 32 structured featuring the European benchmark alongside other equity indices such as the S&P 500 and currency pairs (EUR/USD).
The new ETF will be listed on Taiwan Stock Exchange in 2016, and it will be the first time that the Eurostoxx 50 index has been licensed to underlie an ETF in Taiwan. There are currently 22 ETFs on the index available globally.
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