<img height="1" width="1" style="display:none;" alt="" src="https://px.ads.linkedin.com/collect/?pid=4496002&amp;fmt=gif">

Small Cap High Beta

 

Speedread:

  • Daiwa lists equally weighted JREIT fund in Tokyo
  • Xtrackers small cap Europe fund comes OTC in the US
  • Lyxor lists new ESG Europe fund in Paris

USA

Xtrackers Europe small capper goes OTC in the US

DWS’s $770M Europe small cap tracker is now getting traded OTC in the US. The Xtrackers MSCI Europe Small Cap UCITS ETF (DBXVF) tracks an index of small caps in the 15 richest European countries put together by MSCI.

The UK is the most heavily weighted country in the index by far – taking 33% of the weight. Germany and Sweden come second and third, with 11% and 10% weight respectively. For sectors, the index tilts towards industrials and financials, which can be more cyclical.

Analysis – small cap premium or high beta?

Academics debate whether the small cap premium exists and if it does, whether it works well outside the US.

But for ETFs, most small cappers appear to work (just check out BlackRock’s IVV compared with IJR; or today's listing, which trades under the ticker XXCS in London, compared with XMEU). The question then becomes whether they outperform because they’re small cap trackers? Or do they outperform because they’re higher beta?

 

 

Here in fact it helps to notice that the small cap funds are higher beta funds. And beta has been one of the best performing factors in recent years. Beta funds have the further benefit of incurring less transaction costs.
Japan

 

Equal weight REIT

Daiwa, Japan’s third-largest ETF provider with $60bn in ETF assets, is listing a new REIT ETF that tracks an index from the Tokyo Stock Exchange. The DAIWA ETF TSEREIT Core Index ETF will track an index of equally weighted Japanese REITs. The Daiwa ETF Tokyo Stock Exchange REIT Core Index (2528) will enter a crowded market at home; there are eight JREIT ETFs in Tokyo, almost all of which are competitively priced.

The fund will charge 0.20%.

France

Lyxor widens ESG offering

Lyxor is building out its ESG offering in Europe, in attempt to tap further into the world’s largest ESG market. The new Lyxor MSCI Europe ESG Leaders DR UCITS ETF (ESGE), will list in Paris and charge 0.20%.

 

Index factsheet here.

 


Subscribe to Insights for updates

• Contact us

Have questions about this?

Speak to one of our ETF data specialists about how this applies to your fund range.

Get in touch

Ultumus

Ultumus is a leading provider of ETF and index data, calculation, and workflow solutions, and the largest independent PCF calculation agent globally. Owned by SIX, which operates the SIX Swiss Exchange and BME Exchange in Spain, Ultumus delivers essential infrastructure to the global ETF ecosystem. Founded in 2016, Ultumus captures, normalises, enriches, and distributes index and ETF data, with an ETF Order Management System that processes creation and redemption workflows straight through to more than 35 APs, transfer agents, and custodians. Trusted by asset managers, issuers, and authorised participants worldwide, Ultumus is headquartered in London, with offices in Singapore, Hong Kong and the US supporting clients globally. For more information, visit www.ultumus.com, follow Ultumus on LinkedIn, or contact us.

Related posts

Search ULTUMUS EXPANDS INTO ASIA PACIFIC WITH NEW SINGAPORE OFFICE
John Hancock adds new sector multifactor fund Search