Lyxor - one of the leaders of the European ETF market

Na ETF market companies from the United States (Blackrock, Vanguard, State Street). However, the remainder of the market pie is very fragmented. An example is Lyxor - which is one of the leading European ETF providers. The company employs approximately 600 people on three continents. Lyxor has its offices mainly in Europe (including France, Germany, UK, Switzerland, Italy). Other offices are in the United States, Japan and Hong Kong.

Lionel Paquin

Lyxor's CEO is Lionel Paquinwho has been performing the above-mentioned function since February 2014. Mr. Paqui has been with Lyxor for over 13 years. Previously, he worked at Societe General and the French Ministry of Finance in 1995-2004.

Lyxor was founded in 1998 by the French bank Societe Generale. Lyxor is headquartered in Paris. At the end of January 2021, the company had € 160,4 billion in assets under management (AUM) under management. About half of the assets (€ 79,1 billion) are held in ETFs and index funds. It gives Lyxor 3rd place on the ETF market in Europe. The company has introduced over 300 ETFs to the world markets, giving the possibility of investing in many investment areas (from bonds, through raw materials to shares). 

Lyxor Asset Management is one of the best known "suppliers" of ETFs on the Polish market. This is due to the fact that this company was the first to introduce three ETFs to the Polish stock exchange. This concerned ETFs mapping the WIG20 index, S & P 500 and DAX 30. The first product was the ETF on the WIG 20 index, which debuted in September 2010. A few months later (in May 2011) ETFs debuted on the American and German markets. However, the main activity of the company does not concern the Polish market. 

20 years of innovation

The company is one of the leaders of the European ETF market. Suffice it to mention that it was Lyxor who created the first ETF listed on the Euronext exchange that reflects the French CAC 40 index. It took place in 2001, 9 years before the first ETF debuted on the Polish market. In 2005, the ETF made its debut on the Euronext exchange, giving an indirect opportunity to invest in Chinese companies. In 2007, one of the leading ETFs involved in investing in water (Lyxor UCITS World Water D-EUR) made its debut on the same stock exchange. 

Lyxor, seeing a growing interest in environmental protection, sustainable development and equal opportunities in the labor market, created ETFs with exposure to these markets. Examples include ETFs that allow investing in "green bonds" and ETFs that invest in companies that meet the rules "Gender Equality".  

Lyxor works with index providers to provide exposure to indices such as S&P, DAX and EURO STOXX. At the same time he pays, among others for the rights to use indices from the MSCI "family" as  benchmark  to their ETFs. 

ETF related products

Lyxor covers many classes of assets. These are ETFs with an exposure, among others, on the stocks, bonds, commodities, real estate, money market and leveraged products. Below is a brief summary of ETFs that allow you to invest in the stock and bond market. ETFs on Lyxor are available incl. on the Euronext, Deutsche Boerse, LSE and WSE exchanges.

ETFs for the stock market

Lyxor has a very broad exposure to the equity market for the retail investor. Of course, access to products depends on having access to foreign exchanges. For example, an investor with access to the Euronext market only has access to 229 ETFs on the stock market, according to Lyxor. On the other hand, an investor with access only to ETFs listed on the London Stock Exchange can invest in "only" 42 ETFs exposed to the equity market. The availability of ETFs for the "Polish investor" who has access only to trade on the WSE looks much worse. Then the available palette shrinks to just three solutions.

Fortunately, now both domestic and foreign brokers offer access to foreign markets. Thanks to this, you can take advantage of a much more extensive offer of ETFs.

In terms of assets under management (AUM), the most popular ETFs with equity exposure are:

• Lyxor EURO STOXX 50 (DR) UCITS ETF - Accwhich gives exposure to the largest and most liquid companies on the European market. At the end of January 2021, the assets under management amounted to € 4 billion. The largest components in the ETF are shares of ASML (7,4%) and LVMH (+ 5,2%). Annual costs (TER) are 0,2%.

Lyxor Euro Stoxx 50 UCITS ETF (acc.) Chart, interval W1. Source: xNUMX XTB.

• Lyxor S&P 500 UCITS ETF - Dist (EUR) - enabling passive investment in the largest companies on the American market, which are included in the S&P 500 index. At the end of January 2021, assets under management amounted to € 2,9 billion. The largest components in an ETF are company shares Apple Lossless Audio CODEC (ALAC), (6,7%) and Microsoft (+ 5,6%). Annual costs (TER) are 0,09%.
• Lyxor MSCI World UCITS ETF - Dist - is a solution for those who prefer one product with exposure to the largest exchanges around the world.  As of January 29, 2021, the assets under management amounted to € 2,9 billion. As in the case of the ETF on the S&P 500, the largest components are Apple and Microsoft. However, this ETF is much more diversified - 35% of assets are invested outside the US. Annual costs (TER) are 0,30%.

Lyxor also offers investing in specific market segments. An interesting example is Lyxor MSCI World Information Technology TR UCITS ETF - Acc, which invests in companies from the modern technology sector. Companies listed on the American market dominate (83,5% of assets). Among the 10 largest ETF components there are companies such as Apple, Visa, Mastercard and Adobe. Assets under management amount to approximately € 660 million. Annual costs (TER) are 0,30%.

Lyxor MSCI World Information Technology TR UCITS ETF (acc.) Chart, interval W1. Source: xNUMX XTB.

ETFs for the bond market

Lyxor also offers passive solutions for investors looking to invest in debt securities. For an investor with access to the Euronext exchange, it is possible to invest in 88 ETFs related to the debt market. An investor with access to the London Stock Exchange can invest in 20 ETFs operated by Lyxor, which allow investing in the bond market.

• Lyxor Core US TIPS (DR) UCITS ETFwhich gives exposure to Inflation-linked Bonds (TIPS). The average maturity is 8 years. The index benchmark is Bloomberg Barclays US Inflation Linked Bonds TR. Assets under management amount to € 1bn. The annual management cost (TER) is 0,09%.
• Lyxor EUR 2-10Y Inflation Expectations UCITS ETF - Accwhich gives exposure to Euro-denominated Inflation-linked Bonds (TIPS). The average maturity is 6 years. The index benchmark is Markit iBoxx EUR Breakeven Euro-Inflation France & Germany Index Nominal TRI. Assets under management amount to € 1bn. The annual management cost (TER) is 0,25%.

Summation

Lyxor Asset Management operates mainly on the European market. It has a wide range of ETFs related to the stock, bond, commodity and money markets. Lyxor, despite the fact that it does not belong to the world's "big three", keeps up with the market trends. For this reason, Lyxor offers ETFs related to investing in companies and bonds that meet ESG standards. Trading ETFs from Lyxor is available from incl. on the platform XTB and Saxo Bank.

Forex brokers offering ETFs

Broker
End	Poland	Denmark	Great Britain
The amount of ETF on offer	approx. 400 - ETF approx. 170 - CFDs on ETFs	3000 - ETF 675 - ETF CFDs	397 - ETF CFDs
Min. Deposit	PLN 0 (recommended min. PLN 2000 or USD 500, EUR)	0 PLN / 0 EUR / 0 USD	PLN 5
Platform	xStation	SaxoTrader Pro Saxo Trader Go	MetaTrader 5
	REVIEW	REVIEW	REVIEW
	CREATE AN ACCOUNT	OPEN AN ACCOUNT	CREATE AN ACCOUNT

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. From 72% to 89% of retail investor accounts record monetary losses as a result of trading CFDs. Think about whether you understand how CFDs work and whether you can afford the high risk of losing your money.