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ETFS
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ETFs are effective mechanisms for constructing, managing and getting the best from a diversified portfolio.
The ever wider selection of indices has made it possible to provide a broad range of ETFs so that investors can diversify their portfolios in all asset classes.
- Equities
- Bonds
- Money market
- Commodities
LYXOR ETF's approach stands out because of the wide variety of investment strategies offered, thanks to instruments continuously quoted on the stock exchange, and thanks to reduction of risk through diversification (either exposure to broad indices or to narrower market segments).
These mechanisms can fit in with other investment strategies (structured or alternative investment management). They enable you to control risk using a number of diversification strategies:
- The "core-satellite" strategy
- Investing cash or immediate asset allocation
- Hedging positions
ETFs make it possible to take "core-satellite" type positions.
Core-Satellite strategy is increasingly used by investment managers. In the "Core-Satellite" approach the asset portfolio is made up of a "Core" and of one or more "Satellites". The Core makes it possible to replicate the performance of your benchmark as closely as possible. It may therefore be made up of one or more trackers so as to meet your investment targets, which are the perfect replication of one or more benchmark indices with low management fees and very low tracking error risk. The purpose of the Satellites is to generate alpha. Alpha represents fund performance and is independent of the performance of the index. ETFs can be used both as Core components and Satellite components.
Investing cash or immediate asset allocation
From a short/medium-term perspective, ETFs make it possible to invest cash while awaiting an investment decision: ETFs are a versatile and flexible alternative to holding securities directly or to futures. ETFs are an effective and very simple way of rebalancing assets. The liquidity provided by ETFs makes it possible to use them for managing both cash (fund or portfolio entries/exits) and market expectations.
Tactical asset allocation
Lyxor ETFs are a means for you to take positions on various asset classes quickly and at modest cost. Investors can indeed invest in various asset classes, geographical areas, style-specific investments, and they can rebalance their portfolios at any time to grasp any investment opportunities.
Find out more: www.lyxoretf.com
