The Source S&P 500 Eur-Hedged UCITS ETF is the provider’s latest addition and a variant of the Source S&P 500 UCITS ETF, which currently holds $1.7bn (£1bn ,€1.3) of assets under management.
It is available on the Xetra platform and has a target return of the S&P 500 Euro Hedged Total Return (Net) Index, after fees.
Source’s chief development officer, Michael John Lytle, said there has been “a tremendous amount of interest” in ETFs tracking the S&P 500 over the past year.
The new fund offers investors low cost exposure to the US stock market with lower risk of currency volatility, which Lytle said “could be attractive for some investors given the appreciation seen in the US dollar versus the euro this year”.
The fund has a management fee of 0.15% per year, and is based in US dollars and traded in euros.
The ETF’s currency exposure will be hedged on a monthly basis, which reduces currency volatility without incurring prohibitive costs.
