Source launches small and mid-cap ETF

April, 2014 Print



ETF specialist Source has launched the Source Russell Europe SMID 300 UCITS ETF to provide liquid exposure to the Russell Europe SMID 300 Net TR Index. The ETF is designed to offer liquid exposure to European small and mid-cap equity market, which is of growing importance to investors. It is up from €€1.8 billion in assets to around €9 billion.

The SMID index consists of 300 highly liquid constituents which are selected from the Russell Global Index of 10,000 stocks. It contains stocks from the 75th and 95th percentiles by market capitalisation, with stocks with an average daily trading volume of less than €€2 million excluded. The remaining stocks are selected by choosing those with the lowest free float market cap relative to their average daily trading volume. This means a range of stocks can be included without compromising liquidity. Stocks such as Barratt Developments, easyJet and Hargreaves Lansdown are included in the index, which is rebalanced annually.

Source CEO Ted Hood commented: “In each market segment, Source aims to offer efficient and representative exposure, meeting investor needs. This product offers European investors access to a broad cross-section of Europe’s promising small- and mid-cap markets.”


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