The first global blue-chip exchange-traded fund (ETF) has been launched in Europe. Dow Jones Indexes said it has signed a licence agreement with AXA Investment Managers under which AXA will list an ETF based on the Dow Jones Global Titans 50 index.
“Low component turnover, a limited number of index components and high liquidity makes the Dow Jones Global Titans 50 an ideal underlying for an exchange-traded fund,” said Mike Petronella, managing director of Dow Jones Indexes. The ETF would enable European investors to buy holdings in 50 of the world’s largest and most important companies as a single security, he said.
ETFs are baskets of securities which are similar to a mutual fund, except that they trade as individual stocks. The new ETF is called EasyETF GLOBAL TITANS 50. The new EasyETF series is traded on Euronext.
International derivatives exchange Eurex introduced futures and options on the Dow Jones Global Titans 50 index at the end of April.