STOXX Introduces Daily Currency-Hedged Indices Offering

STOXX Limited, a provider of tradable and global index concepts across a number of asset classes, has launched daily currency-hedged versions based on a cascade of existing STOXX offerings, according to a STOXX company statement.

Earlier this week, STOXX expanded its presence in the Asia-Pacific (APAC) region, opening a new office in Sydney and appointing Jonathan Morgan as its regional director.

The company’s newest indices offering represents an aim to target investors who are pursuing exposure to existing STOXX benchmarks, whilst eying a reduction to currency fluctuation risks. As such, STOXX has implemented currency-hedged versions of the following benchmarks:

• EURO STOXX 50
• EURO STOXX
• EURO STOXX Select Dividend 30
• STOXX Europe 600
• STOXX Europe Select Dividend 30

Moreover, the British pound (GBP) and US dollar (USD) hedged versions of the EURO STOXX 50 Index have been licensed to Lyxor ETF, which will now be available on the London Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term (LSE).

According to Hartmut Graf, Chief Executive Officer, STOXX Limited, in a recent statement on the launch, “Increasing exchange rate Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term can lead to significant deviations between index performance in local currency, and the returns of non-hedged financial products listed in a different currency.”

“With the launch of our new STOXX Daily Currency Hedged index family, we are offering market participants globally a set of index solutions which enable them to participate in the performance of our flagship indices, while simultaneously limiting risk of currency fluctuations on a daily basis,” Mr. Graf added.

“Thanks to the latest index developments offered by STOXX, Lyxor is able to further enhance its comprehensive range of equity ETFs, providing investors with more accurate tools to hedge the increasing currency volatility. We are pleased to extend our cooperation with STOXX in order to bring efficiency and innovation to the ETF market,” noted Arnaud Llinas, Head of Lyxor ETFs and Indexing, in an accompanying statement.