Today's listingsItaly Two ETFs for Lyxor in Milan: inflation expectations and Euro Stoxx 50 Lyxor will be cross listing two ETFs in Italy, one of which tracks inflation expectations; the other of which is a plain vanilla Euro Stoxx ETF. The inflation expectations ETF (INFL), is a curiosity and takes a bit of a fiddle to get one's head around. INFL tracks inflation expectations by buying and holding inflation-linked bonds while shorting sovereign bonds. How does that track inflation expectations? Well, in theory, as inflation expectations rise the prices of sovereign bonds should fall (as they have no inflation protection, no-one who thinks inflation will rise will want them). The falling value of sovereign bonds should mean that shorting them pays off and thus the fund makes gains as inflation expectations rise. The plain vanilla ETF is more straightforward. The Lyxor Euro Stoxx 50 UCITS ETF (MSED) will track the Euro Stoxx 50 (net) a very popular benchmark. It will track its benchmark by buying the stocks in the index.
Today's news from around the webIssuers have millennials in mind in listing strange products
Why are ETF issuers listing products aimed at millennials? Products like environmentally conscious ETFs, computer game ETFs, and gender diversity? Because millennials are starting to dominate the workforce. And as their elders die, they'll inherit lots of money.
Smart beta: getting crowded
Smart beta funds have proved immune to the fee war. But now there are now so many smart beta ETFs that competition will have to turn to price, new research by Morningstar has found.
Millennials love ETFs most
ETFs are eating active management everywhere and are gaining ground among all age groups. But there is one group that ETFs are particularly popular with: millennials. According to Charles Schwab, 56% of millennials choose ETFs as their weapon of choice, that number falls as investors get older.