EUROPE/UK - Merrill Lynch International has cut management fees for its Euro STOXX 50 and STOXX 50 LDRS from 0.50% to 0.35% in a bid to attract investors.
LDRS are exchange traded funds or index shares. They combine the advantages of index-tracking funds and exchange traded shares and allow investors to diversify their investment across a wide range of stocks in one transaction.
LDRS are structured so that their price throughout the day closely follows the movements of the index being tracked. They can be bought or sold at any time during normal trading hours, at the prevailing market price, through a broker.
Manooj Mistry, ETF product manager at Merrill Lynch, said: “It is now two and half years since Merrill Lynch launched the first ETFs in Europe. The STOXX 50 and Euro STOXX 50 LDRS are recognised as amongst the largest and most actively traded ETFs in Europe.”
The shares in issue have increased by over 60% since the start of the year. LDRS are the most widely offered ETFs in Europe, listed on seven European exchanges with the most recent listing in September on the Italian Stock Exchange.
Mistry added: “LDRS are gaining awareness amongst both institutional and individual investors as they offer an easy and low cost route to obtaining diversified equity exposure. By reducing fees, LDRS will offer even more value for investors.”
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