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Exchange Traded Funds celebrate their tenth anniversary

Exchange Traded Funds celebrate their tenth anniversary

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It is ten years to the day since the first exchange-traded fund, XACT OMXS30TM, was listed on the Stockholm stock exchange. Since then, the turnover in exchange-traded funds (ETFs) has increased a hundredfold. ETFs have gone from being a cost-effective tool for a few professional investors to good value-for-money favourites for a growing number of private investors.

"I think we're just at the beginning. With a growing supply of ETFs with differing investment profiles, creating greater opportunities, I believe that more and more investors will choose ETFs as part of their investment strategy." So said Henrik Norén, managing director of XACT Fonder AB when the company's first ETF, XACT OMXS30TM, celebrated 10 years on NASDAQ OMX Stockholm (the Stockholm stock exchange). 
"The growing interest in ETFs is reflected, among other things, in the inflow we have seen to XACT OMXS30TM over the past three years," continues Henrik Norén. "Assets under management have increased by just over 100 percent, despite a slight downturn in stock market performance."

Since the launch, trading in ETFs has rocketed, from a turnover of just under SEK 1.8 billion in 2001 to just over SEK 210 billion last year.
"An exchange-traded fund is a simple, cheap way of tracking the performance of a given market, such as the stock market, which has helped ETFs to become more popular with small private savers, too," says Jenny Rosberg, SVP of NASDAQ OMX Nordic.

Since the launch, the Swedish stock market and XACT OMXS30TM, which tracks the performance of the 30 most traded shares on NASDAQ OMX Stockholm, have had a dramatic journey. It began during the long market downturn in the wake of the IT bubble and has included terrorist attacks and the financial crisis of 2008 - a bumpy ride, but after ten years, the fund is up by 25 percent. The change in the index is a historical reflection of the performance of the 30 largest Swedish companies during that period. At the fund's launch in October 2000, the Ericsson share had the largest weight in the index, with almost one-third, followed by AstraZeneca and Nordea. Today, H&M is the largest, followed by Nordea and TeliaSonera.

Full press release

XACT launches the first commodity ETF on the Stockholm Stock Exchange

XACT launches the first commodity ETF on the Stockholm Stock Exchange

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On Oktober 12 XACT Fonder listed a new ETF that tracks the price of 15 commodities, including oil, electricity, pulp, and gold. 

"In recent years the popularity of both commodities and ETFs has increased sharply, so it is only logical for us to offer a commodity ETF," says Henrik Norén, Managing Director of XACT Fonder, the world's largest provider of ETFs with a Nordic focus. 
"Our new commodity ETF offers investors a unique opportunity to invest in a product that combines the traditional fund's risk sharing with the stock trading opportunities for a low fee," Henrik Norén continues. 

XACT Råvaror is the first exchange-traded fund that combines global exposure with a clear Nordic focus, offering electricity and paper pulp in the commodity mix. 
"For those who believe in yet another cold winter, XACT Råvaror offers an interesting investment opportunity. The price of electricity rises with the cold, which will also be reflected in fund performance," says Henrik Norén. 

Different commodity-based investments are attracting increasing numbers of investors and have become an integral part of the diversification of risk in many portfolios. 
"In a medium risk portfolio with a 10-year investment horizon, we currently recommend up to 20% commodities," says Torbjorn Iwarson, commodity manager at Handelsbanken. 

Commodities have performed well, both over the past decade as well as the previous 40 years. They also offer risk diversification and security for long-term savings.

"The commodities included in the index are largely those that the investor will consume in the future, which, in a way, makes an investment in the ETF a simple way to save for future consumption, " says Torbjorn Iwarson. 

XACT Råvaror follows the index "SHB Commodity Index Excess Return" which has returned 41.6% in the period January 2005 to September 2010.

The new ETF will be listed on the OMX Stockholm on Tuesday, October 12th. Exchange-traded funds (ETF) are currently the fastest growing financial product, and XACT Råvaror is the ninth new ETF listed by XACT Fonder during the fall of 2010.

ETF Råvaror follows a total of 15 commodities (percentage of fund total): Gasoline (13%), Gasoil (diesel) (13%), Crude oil (13%), Electricity (12%), Copper (11%), Aluminium (9%), Gold (7%), Soybeans (5%), Zinc (4%), Wheat (3%), Cattle (3%), Silver (2%), Pulp (2%), Pork (2% ) and Nickel (1%), all of great importance to the Nordic economies. The ETF is registered in Luxembourg.


For further information, please contact:

Henrik Norén, Managing Director XACT Fonder, + 46 8 701 1222.  

 

XACT is the largest issuer of ETFs on the Nordic market and currently manages SEK 20 billion in 20 ETFs.

XACT Fonder was founded in 2000 by then OM Gruppen AB (now Nasdaq OMX), the same year as the first exchange-traded fund (ETF) was launched in Europe. In 2004, the company was acquired by Handelsbanken and has since then been a wholly owned subsidiary of Handelsbanken. XACT was the first issuer in the world to offer leveraged ETFs with XACT Bull and XACT Bear, launched in 2005. The daily turnover in XACT ETFs averages around SEK 1 billion.

Record listing of eight new Nordic ETFs from XACT

Record listing of eight new Nordic ETFs from XACT

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XACT launches eight new exchange-traded funds (ETFs), the largest single listing to date of ETFs with Nordic focus.

The new ETFs are XACT Nordic 120, which tracks the NASDAQ OMX index consisting of the 120 largest and most traded Nordic companies, and seven sector ETFs tracking the largest listed Nordic companies within the sectors bank & insurance, material, construction & real estate, energy, consumer goods, health care and industrials.

 

"With our new listing, we will now be able to meet the increasing demand for ETFs with exposure to Nordic companies," says Henrik Norén, Managing Director of XACT Fonder, the world's largest provider of ETFs with a Nordic focus.

ETFs are one of the fastest growing investment forms in the world. XACT's new ETFs offer unprecedented opportunities for investors with a focus on the Nordic market.The new sector-ETFs offer investors the possibility to create a portfolio according to their own market view on key sectors in the Nordic economies. XACT's ETFs track NASDAQ OMX's Nordic sector indices, with the largest Nordic companies within the selected sectors.

"The new ETFs are aimed at all types of investors and are also attractive to retail investors, who can now take positions in selected sectors and diversify their exposure to risk," says Jenny Rosberg, Executive Vice President at Nasdaq OMX.

The following eight new ETFs will be listed on the Nasdaq OMX Nordic on September 29:

 

XACT Nordic 120
XACT Bank
XACT Materials
XACT Construction & Real Estate
XACT Energy
XACT Consumer Goods
XACT Health Care
XACT Industrials 

The ETFs are registered in Luxembourg.

For further information, please contact:

Henrik Norén, Managing Director XACT Fonder + 46 8 701 1222.

XACT is the largest issuer of ETFs on the Nordic market and currently manages SEK 20 billion in 12 ETFs.

XACT Fonder was founded in 2000 by then OM Gruppen AB (now Nasdaq OMX), the same year as the first exchange-traded fund (ETF) was launched in Europe. In 2004, the company was acquired by Handelsbanken and has since then been a wholly owned subsidiary of Handelsbanken. XACT was the first issuer in the world to offer leveraged ETFs with XACT Bull and XACT Bear, launched in 2005. The daily turnover in XACT ETFs averages around SEK 1 billion.

Dividend amounts in XACT OMXS30, XACT OMXSB and XACT Nordic30

Dividend amounts in XACT OMXS30, XACT OMXSB and XACT Nordic30

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The dividend amounts for XACT OMXS30, XACT OMXSB and XACT Nordic30 have now been decided.

 

 

 

Fund

Currency

Dividend per fund unit

Total number of fund units

Total dividend

XACT OMXS30

SEK

3.44

67 500 000

232 200 000

XACT OMXSB

SEK

18.01

4 450 000

80 144 500

XACT Nordic30

EUR

0.16

45 200 000

7 232 000

 

 

4 June 2010, The details of the dividends are made public

7 June 2010, Last day to trade fund units including the right to receive dividend

8 June 2010, Ex-dividend - the fund units are traded ex dividend

15 June 2010, Payment day for payments in Swedish krona, SEK

17 June 2010, Payment day for payments in Euro 

To receive a dividend you must own fund units when the market closes on the 7th June 2009. The last day to buy fund units and still receive a dividend is hence the 7th June. You can then sell your fund units the following day, you will still receive dividend.

If you don't wish to receive a dividend you must sell your fund units by the 7th June 2009. You can then buy fund units again the following day (8th June) without receiving a dividend.

Why do the funds pay dividends?
As most other Swedish funds, the funds pay a dividend to avoid double taxation.

What happens on the ex day?
All else being equal, the price of a fund unit will decrease with the exact same amount as the dividend per fund unit.

Why can't you provide a dividend forecast?
The size of the dividend is decided by the funds taxable result. The dividend is split between the numbers of outstanding units. Since the number of outstanding units can change daily, a forecast cannot be done.

Dividend Dates

This information is only applicable to XACT OMXSB, XACT OMXS30 and XACT Nordic. XACTs Bull & Bear funds pay their dividend in March.

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4 June 2010, The details of the dividends are made public

7 June 2010, Last day to trade fund units including the right to receive dividend

8 June 2010, Ex-dividend - the fund units are traded ex dividend

15 June 2010, Payment day for payments in Swedish krona, SEK

17 June 2010, Payment day for payments in Euro 

To receive a dividend you must own fund units when the market closes on the 7th June 2009. The last day to buy fund units and still receive a dividend is hence the 7th June. You can then sell your fund units the following day, you will still receive dividend.

If you don't wish to receive a dividend you must sell your fund units by the 7th June 2009. You can then buy fund units again the following day (8th June) without receiving a dividend.

Why do the funds pay dividends?
As most other Swedish funds, the funds pay a dividend to avoid double taxation.

What happens on the ex day?
All else being equal, the price of a fund unit will decrease with the exact same amount as the dividend per fund unit.

Why can't you provide a dividend forecast?
The size of the dividend is decided by the funds taxable result. The dividend is split between the numbers of outstanding units. Since the number of outstanding units can change daily, a forecast cannot be done.

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  • i Source: Millistream
  • Updated Updated 16:25, 2017-08-18
  • i Source: Handelsbanken
  • Uppdated Uppdated 08:45, 2017-08-18
  • Information Source: Handelsbanken
  • Updated Updated 08:45, 2017-08-18

Data source

This information is updated every 15th minute from Millistream. Xact does not assume any liability for errors in the information.

Data source

This information is updated every 15th minute from Handelsbanken. Xact does not assume any liability for errors in the information.