Horizons launches EURO STOXX 50 ETF

Jess Morgan 7 December, 2016 | 9:00PM

A new ETF from Horizons will offer exposure to a European equity index that Canadian investors have not had the chance to track until now. Horizons EURO STOXX 50 ETF opened for trading Wednesday on the Toronto Stock Exchange under the symbol HXX.

This makes Horizons the first ETF provider to license an index from Swiss-based STOXX Ltd. EURO STOXX 50 is its most widely followed index strategy, covering 50 blue-chip stocks from 12 Eurozone countries. The index has returned -2.9% year-to-date, behind the MSCI Europe Investable Market Index (IMI), which has returned 1%, but ahead of the FTSE Developed Europe All Cap Index, which has returned -3.4%.

"The EURO STOXX 50 provides exposure to some of Europe's largest and most well-known brand names, including  Anheuser-Busch InBev (BUD),  Bayer (BAYRY),  BASF (BASFY) and Daimler (DDAIY),” said Steve Hawkins, president and co-CEO of Horizons, in a press release announcing the launch. The new ETF uses derivative instruments to replicate the total returns of its underlying index, instead of holding stocks directly.

HXX is available at a management fee of 0.17%, undercutting similar products such as iShares MSCI Europe IMI (XEU), available for 0.25%, and Vanguard FTSE Developed Europe All Cap Index (VE), available for 0.20%.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Anheuser-Busch InBev SA/NV ADR92.28 USD0.22
Basf SE ADR18.27 USD1.50
Bayer AG ADR18.29 USD-0.49

About Author

Jess Morgan

Jess Morgan  Jess Morgan is the associate editor of Morningstar Canada’s website. She began her career as a television producer and freelance writer, often making appearances on TV and radio as a commentator on politics and culture. She holds a BA in communications from the University of Winnipeg and a diploma in Creative Communications from Red River College.