| ETF gets off to good start |
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| Investors who purchased shares in Ireland’s first ever exchange-traded fund (ETF), the ISEQ 20 ETF, have seen a significant return on their investment since the launch date two months ago on April 22nd. ETFs are index funds that are listed and traded on exchanges like stock. |
The fund has risen from a launch price of €12.09 to €13.12 (as of 23/06/06); an increase of 8 per cent, outperforming both the UK FTSE and US S&P which were both up over 5 per cent respectively.
‘We are pleased on a number of fronts; obviously it is nice to get an 8 per cent return over a two month period but also the fact that the pricing has been strong with a typical 4-6 cent trading spread throughout most of the trading day’ said Peter Duff, director of NCB Investment Services, which is fund manager of the ISEQ 20. ‘It is also worth remembering that because investors owned a basket of shares, this return has been achieved by having less risk on the table than had they owned a specific share or indeed a small number of shares,’ he added.
With a total expense ratio of just 0.5 per cent per annum, Duff says it is a particularly attractive option over traditional trackers. The ISEQ 20 ETF is made up of Ireland’s 20 leading stocks. |
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| Article appeared in the July 2005 issue.
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