Fund manager Lyxor has listed two new ETFs on the NYSE Euronext Paris exchange to track indices that adjust conventional equity weightings by different risk measures.

The Lyxor ETF SMARTIX Euro iSTOXX 50 Equal Risk ETF takes as its starting point the Euro STOXX 50 index, the most widely followed benchmark of large eurozone equities. Lyxor then reweights the index’s components by a proprietary “equal risk contribution” model.  The resulting portfolio overweights financials, consumer goods, telecommunications and utilities by comparison with the capitalisation-weighted Euro Stoxx 50 index, while underweighting energy stocks.

The ETF carries a total expense ratio of 0.25% a year, is issued as a Luxembourg FCP (“fonds commun de placement”) and capitalises dividends.

The second new fund, the Lyxor MSCI World Risk-Weighted ETF, draws upon the constituents of the index provider’s world equity benchmark, which are then reweighted by the inverse of their historical volatility.

This ETF has a TER of 0.45% and is issued from Lyxor’s Luxembourg “SICAV” fund umbrella.  It capitalises dividend income and is priced in euros.

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