The UK’s largest asset manager L&G has launched a Ucits ETF that tracks the S&P 100 index.
The L&G S&P 100 Equal Weight Ucits ETF aims to provide investors with an equally weighted exposure to the S&P 100, an index which consists of 100 major US blue chip companies across multiple industry groups and represents a sub-set of the US large-cap index S&P 500.
The ETF is the first in Europe to offer exposure to the S&P 100 Equal Weighted Index net total return and aims to give an alternative to the standard S&P 500 Index by providing access to many of the largest index constituents with lower concentration risk.
L&G said it launched the ETF to provide investors with simple, liquid and cost-effective access to many of the largest stocks in the US market, with each position reweighted at 1% at each rebalance.
The firm’s David Barron said: “We want to provide investors with the building blocks they need for their portfolios and feel that the fund, the first of its kind in Europe, can be used either as a core US equity allocation to capture large-cap, high-quality exposure with diversification, or as a satellite to complement a traditional S&P 500 fund by reducing portfolio corelation to mega-cap tech dominance.”
Fiona Boal, Global Head of Equities at S&P Dow Jones Indices said: “We are pleased to work with L&G on the launch of the ETF, expanding the range of index-based tools available to European investors.
“This index provides an alternative to traditional market-cap weighting by enhancing diversification and underscores our commitment to offering innovative, transparent benchmarks that meet evolving investor needs.”
