Lyxor AM has announced the launch of 5 thematic equity ETFs based on the megatrends at a press conference attended by Next Finance.
Lyxor AM has decided to expand its range of trackers by launching 5 new equity ETFs offering an exposure to long-term global structural trends, which are set to redefine our society in the coming years.
Therefore, investors are able to seize "investment opportunities that go beyond traditional sector classifications by staying one step ahead of future changes", according to Arnaud Llinas, head of index and ETF management at Lyxor AM.
5 megatrends identified
In practice, Lyxor has identified 5 megatrends that are set to change the society in which we live:
- the growth of the digital economy;
- disruptive technologies;
- urban change with the mobility of the future ("Future Mobility");
- smart cities;
- the consumption habits of Millennials.
In fact, according to Stéphane Mattatia, head of thematic indices at MSCI, "the existence of these megatrends is widely accepted". This is the reason why Lyxor AM has decided to focus on these 5 investment themes to launch its new trackers.
An innovative portfolio construction
To do that, the asset management company uses MSCI expertise to build specific thematic indices in order to select the leaders of tomorrow which will fully benefit from each of these megatrends.
Innovative techniques using artificial intelligence, such as natural language processing but also data analysis, provide a systematic selection of the companies that will be included in the index, according to the proportion of their turnover generated in connection with a particular thematic.
In addition, each index incorporates filter using MSCI’s ESG ratings, controversial scores and the exclusion of certain activities.
Finally, these ETFs use a direct (physical) replication method, "with an equal weighting of securities and a bi-annual rebalancing", specifies Grégory Berthier, product manager at Lyxor.
They are listed on SIX Swiss Exchange, Euronext, the London Stock Exchange (London) Stock Exchange - LSE), on Xetra and Borsa Italiana, with annual management fees reduced to 0.15% until September 2021 before going up to 0.45%.
