{"id":42686,"date":"2015-06-11T07:56:29","date_gmt":"2015-06-11T05:56:29","guid":{"rendered":"http:\/\/beta.next-finance.net\/innovation\/source-launches-etfs-with-focus-on-eurozone-and-japanese-exporters\/"},"modified":"2015-06-11T07:56:29","modified_gmt":"2015-06-11T05:56:29","slug":"source-launches-etfs-with-focus-on-eurozone-and-japanese-exporters","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/innovation\/source-launches-etfs-with-focus-on-eurozone-and-japanese-exporters\/","title":{"rendered":"Source launches ETFs with focus on eurozone and japanese exporters"},"content":{"rendered":"<p>Peter Thompson, President of Source, said, <em>&#8220;We are delighted to have worked with STOXX to develop<br \/>\nthese innovative new indices that will enable investors to construct their portfolios more precisely by<br \/>\nusing revenue-based indexing. We identified a particular need from our investors to gain more targeted<br \/>\nexposure to the topical themes of currency devaluation and quantitative easing; hence these indices<br \/>\nfocus precisely on those companies in the Eurozone and Japan that have a majority of non-domestic<br \/>\nrevenues. This could be especially valuable now with both the ECB and Bank of Japan using QE, offering<br \/>\nthe potential for weaker currencies that is likely to boost exporters\u2019 earnings.&#8221;<\/em> <\/p>\n<p>The indices\u2019 analysis of underlying revenues can reveal important characteristics that are ignored by<br \/>\ntraditional market cap weighted indices. For instance, contrary to Japan\u2019s reputation for being a strong<br \/>\nexporting nation, only around 33% of the revenues of the largest 600 Japanese companies are derived from overseas earnings[[ Source: STOXX, analysis based on the STOXX Japan 600 Index, as at June 2015.]]. If an investor believes that quantitative easing by the Bank of Japan will weaken<br \/>\nthe yen and, in turn, improve the profitability of Japanese exporters, they may wish to consider the new<br \/>\nSTOXX Japan International Exposure Index, which roughly doubles that foreign revenue exposure to 65%. <\/p>\n<p>STOXX uses a transparent and straightforward construction process that is consistent across both the<br \/>\nEurozone and Japan indices:  they are constructed from those companies in the respective parent indices<br \/>\nwith at least 50% of their revenues earned from abroad, and then weighted by the product of the free<br \/>\nfloat market capitalisation and the percentage of international revenue. Individual positions are capped<br \/>\nat 5%.  <\/p>\n<p> Both ETFs are available in currency-hedged and unhedged versions. The Source STOXX Eurozone<br \/>\nExporters UCITS ETF is being launched on XETRA in EUR, with a USD-hedged version on the LSE, while the Source STOXX Japan Exporters UCITS ETF is being launched on the LSE, with a EUR-hedged version<br \/>\navailable on XETRA.  <\/p>\n<p>Source UK Services Limited is authorised and regulated by the Financial Conduct Authority in the UK. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source, one of the largest providers of Exchange Traded Products (ETPs) in<br \/>\nEurope, is pleased to announce the launch of the Source STOXX Eurozone Exporters UCITS ETF and the<br \/>\nSource STOXX Japan Exporters UCITS ETF, which track the new STOXX International Exposure Indices. <\/p>\n","protected":false},"author":20,"featured_media":42684,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1471],"tags":[1655,1718,1671,1651,1437,1691,2234,1720,1952,1738],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/42686"}],"collection":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/comments?post=42686"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/42686\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/42684"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=42686"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=42686"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=42686"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}