Lyxor AM is among the biggest European ETF providers. According to their website they have 40 billion euros in assets. Lyxor covers commodity, equity and fixed income indeces. Both names ETF Lyxor as well as name Lyxor are brand names owned by Société Générale, whereas ETF Lyxor products are managed by Lyxor AM.
ETF Lyxor investments are classified as open-ended funds, replicating a diversified index, with at least five or more different assets. This kind of diversification allows retail investors to gain an access to a whole region, commodity or market sector at a time, without the need of buying many different kinds of ETFs.
Lyxor ETFs are listed on LSE (London Stock Exchange) UK, which allows investors to trade their ETFs live at any time when the Stock Exchange is open. They are also suitable for ISA accounts for all UK residents and SIPP holders. If bought on LSE there is no stamp duty on ETF Lyxor investment products.
ETF Lyxor exchange traded funds are made for professional investors, both retail and institutional, that undertand the risks involved, have full knowledege of the asset classes that each Index represents and understand the nature of these investment products.
Some of the benefits that ETF Lyxor products offer are cost efficency (low structural costs and management fees), tax efficency, transparency, liquidity and the fact that they are well diversified products.
Risks that come with ETF Lyxor investments:
- Capital Risk- These ETFs are tracking funds, which means that if the underlying asset is losing its value, so is the ETF
- Currency Risk- Exchange rate fluctuations could impact the returns
- Liquidity Risk- As the liquidity is dependent on the market makers , on-exchange liquidity could be restricted due to suspension of underlying market.. Although rare, the liquidity could also be restricted if something happened to the relevant stock exchanges where the Lyxor ETFs are listed.
Please see their Lyxor AM website directly for full list of the risks that Lyxor points out.