Liquid Alternatives: New, ‘Megatrend’ ETFs from Lyxor
Lyxor launches a suite of futuristic, thematic ETFs listed in Europe.
Lyxor International Asset Management has launched a clutch of five thematic ETFs that seek to capture megatrends unfolding globally, particularly after the COVID-19 crisis. Investors looking for gains beyond the pale of the conventional sector and market-cap-weighted funds could consider investing in these funds. These megatrend ETFs span themes such as the growth of the digital economy and disruptive technology, urban change with future mobility and smart cities, and the consumption habits of millennials. (Cision)
These new ETFs are highly innovative because they rely on transparent indexing, high tech data science, and identification of trend development through human insight.
Selection of companies using NLP and data science
Each fund will utilize indices developed in conjunction with MSCI through natural language processing and data science. It identifies companies for inclusion according to certain keywords based on the proportion of their business linked to one of the themes.
MSCI Indices
The ETFs will track customized indices constructed by MSCI. Each index is filtered based on MSCI ESG Ratings, controversy scores, and the exclusion of certain business activities, with final stock weights based on a combined score of three fundamental metrics.
Also, MSCI experts will advise the funds on the most efficient way and up-to-date way to capture a trend.
The Lyxor megatrend ETFs
Said Arnaud Llinas, Head of Lyxor ETF & Indexing: “The world is changing rapidly, as evidenced by the current Covid-19 crisis, and humans are innovating faster than ever. Mass working from home, for example, has introduced millions of more people to the digital economy. Meanwhile, health concerns have prompted discussions on the future of mobility and how smart cities could help combat the spread of infectious diseases. The future of sector investing looks very different. That’s why these ETFs mark a new frontier for passive investment.”
| ETF name | Index name | Total Expense Ratio (TER) |
| Lyxor MSCI Smart Cities ESG Filtered (DR) UCITS ETF | MSCI ACWI IMI Smart Cities ESG Filtered Net Total Return Index | 0.45% |
| Lyxor MSCI Future Mobility ESG Filtered (DR) UCITS ETF | MSCI ACWI IMI Future Mobility ESG Filtered Net Total Return Index | 0.45% |
| Lyxor MSCI Digital Economy ESG Filtered (DR) UCITS ETF | MSCI ACWI IMI Digital Economy ESG Filtered Net Total Return Index | 0.45% |
| Lyxor MSCI Disruptive Technology ESG Filtered (DR) UCITS ETF | MSCI ACWI IMI Disruptive Technology ESG Filtered Net Total Return Index | 0.45% |
| Lyxor MSCI Millennials ESG Filtered (DR) UCITS ETF | MSCI ACWI IMI Millennials ESG Filtered Net Total Return Index | 0.45% |
Related Story: Liquid Alternatives: Lyxor’s New Suite of Climate Change ETFs
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