What is an ETF?
ETF (Exchange Traded Fund) is an open-ended investment fund traded on the stock exchange, which tracks the performance of an exchange index. Like other investment funds, an ETF is regulated by EU Directives and national regulations. An ETF may create and redeem "units/shares" on on-going (daily) basis. ETF creation units are traded on the stock exchange on the same terms as shares. WIG20 ETF creation units are securities.
The first ETF listed on the WSE is the WIG20 ETF issued by LYXOR Asset Management, member of the Societe Generale Group. The creation units of the ETF are traded in PLN in the continuous quotations system on the same terms as shares. The trading unit is 1 creation unit whose initial value is equal to 1/10 of WIG20 value. The creation units have the trading name ETFW20L. Liquidity of trading on the secondary market is supported by leading investment firms. LYXOR WIG20 ETF is:
- An easy way to diversify the investment portfolio - one instrument tracks the performance of stocks of 20 leading companies traded on the Warsaw Stock Exchange;
- A transparent investment strategy - the fund tracks the performance of the WIG20 index.
- Liquidity - an instrument traded on the exchange may be bought or sold at any session via a securities account operated by any broker;
- Benefits from dividends paid by WIG20 companies - once a year the investor may receive from the fund a dividend equal to the weighted average dividend of companies participating in the underlying index;
- Low management fees - several times lower than the average fees charged by traditional investment fund managers; there are no administrative fees, front-end or back-end fees on transactions concluded on the exchange.
For more information on the WIG20 ETF including the prospectus, the net asset value, and educational materials published by LYXOR AM see the website www.lyxoretf.pl