Change Country
Welcome to NorwayWelcome
Please read the important information below before continuing to our website

Please read the important information below before continuing to our website.  

By clicking on your client type to enter the website, you are confirming that you have read and understood the important information that is contained below, and you accept the terms of the Privacy and Cookies policy.


This website is published by Lyxor International Asset Management (LIAM), a French asset management company approved by the AMF (17 place de la Bourse 75082 Paris Cedex 02) under the UCITS (2009/65/EC) and AIFM (2011/31/EU) directives.

The website is hosted by on Microsoft Azure servers.

This website is subject to French and Norwegian law.


A professional client is a client that is either a per se professional client or an elective professional client (Note article 4 (1) 12 of Mifid )

Marketing Restrictions and Implications


Lyxor UCITS compliant Exchange Traded Funds (Lyxor UCITS ETFs) referred to on this website are open ended mutual investment funds (i) established under the French law and approved by the Autorité des Marchés Financiers (the French Financial Markets Authority), or (ii) established under the Luxembourg law and approved by the Commission de Surveillance du Secteur Financier (the Luxembourg Financial Supervisory Committee). Most, , of the protections provided by the Danish regulatory system generally and for funds authorised in Denmark do not apply to these exchange traded funds (ETFs).


This website is exclusively intended for persons who are not "US persons", as such term is defined in Regulation S or the US Securities Act 1933, as amended, and who are not physically present in the US. This website does not constitute an offer or an invitation to purchase any securities in the United States or in any other jurisdiction in which such offer or invitation is not authorised or to any person to whom it is unlawful to make such offer or solicitation. Potential users of this website are requested to inform themselves about and to observe any such restrictions.


Index Replication Process


Lyxor UCITS ETFs follow both physical and synthetic index replication process.


However, most Lyxor UCITS ETFs follow synthetic replication process. This consists of entering into a derivative transaction (a ‘Performance Swap’, as defined below) with a counterparty that provides complete and effective exposure to its benchmark index. Lyxor has adopted this methodology in order to minimise tracking error, optimise transaction costs and reduce operational risks.


A Performance Swap is a contractual agreement which is negotiated over-the-counter (OTC) between two parties: the Lyxor UCITS ETF and its counterparty. From a risk perspective, each Performance Swap ranks equally with other senior unsecured obligations of the counterparty, such as common bonds (i.e., same rights to payments). In the Performance Swap, the counterparty of the Lyxor UCITS ETF commits to pay the Lyxor UCITS ETF a variable return based on a pre-determined benchmark index, instead of a fixed stream of income (as in bonds). At the same time, the counterparty will receive from the Lyxor UCITS ETF the performance and any related revenues generated by the basket's assets (excluding the value of the Performance Swap) held by the Lyxor UCITS ETF. Information provided on individual ETFs includes data on the basket relating to the ETF and the percentage value of the basket represented by each asset. The information is relevant to the closing values on the date given. 


Investment Risks


The Lyxor UCITS ETFs described on this website are not suitable for everyone. Investors' capital is at risk. Investors should not deal in this product unless they understand, having obtained independent professional advice where necessary, its nature, terms and conditions, and the extent of their exposure to risk. The value of the product can go down as well as up and can be subject to volatility due to factors such as price changes in the underlying instrument and interest rates. If a fund is quoted in a different currency to the index, currency risks exist.


Prior to any investment in any Lyxor UCITS ETF, you should make your own appraisal of the risks from a financial, legal and tax perspective, without relying exclusively on the information provided by us. We recommend that you consult your own independent professional advisors (including legal, tax, financial or accounting advisors, as appropriate).


Specific Risks


·         Capital at Risk. ETFs are tracking instruments: Their risk profile is similar to a direct investment in the Benchmark Index. Investors’ capital is fully at risk and investors may not get back the amount originally invested. Investments are not covered by the provisions of the Financial Services Compensation Scheme (“FSCS”), or any similar scheme.

·         Counterparty Risk. Investors may be exposed to risks resulting from the use of an OTC Swap with Societe Generale. Physical ETFs may have Counterparty Risk resulting from the use of a Securities Lending Programme.

·         Currency Risk. ETFs may be exposed to currency risk if the ETF or Benchmark Index holdings are denominated in a currency different to that of the Benchmark Index they are tracking. This means that exchange rate fluctuations could have a negative or positive effect on returns.

·         Replication Risk. ETFs are designed to replicate the performance of the Benchmark Index. Unexpected events relating to the constituents of the Benchmark Index may impact the Index provider’s ability to calculate the Benchmark Index, which may affect the ETF’s ability to replicate the Benchmark Index efficiently. This may create Tracking Error in the ETF.

·         Underlying Risk. The Benchmark Index of a Lyxor ETF may be complex and volatile. When investing in commodities, the Benchmark Index is calculated with reference to commodity futures contracts which can expose investors to risks related to the cost of carry and transportation. ETFs exposed to Emerging Markets carry a greater risk of potential loss than investment in Developed Markets as they are exposed to a wide range of unpredictable Emerging Market risks.

·         Liquidity Risk. On-exchange liquidity may be limited as a result of a suspension in the underlying market represented by the Benchmark Index tracked by the ETF; a failure in the systems of one of the relevant stock exchanges, Societe Generale or other Market Maker systems; or an abnormal trading situation or event. 


The securities can be neither offered in nor transferred to the United States.




Any statement in relation to tax, where made, is generic and non-exhaustive and is based on our understanding of the laws and practice in force as of the date of this document and is subject to any changes in law and practice and the interpretation and application thereof, which changes could be made with retroactive effect. Any such statement must not be construed as tax advice and must not be relied upon. The tax treatment of investments will, inter alia, depend on an individual’s circumstances. Investors must consult with an appropriate professional tax adviser to ascertain for themselves the taxation consequences of acquiring, holding and/or disposing of any investments mentioned on this website. 

Further information on the risk factors are available in the [Risk Warning – link to risk page] section of the website.


Any fund prospectus and supplements are available at Information given about the past performance of the funds is no guarantee of future performance. No investment decision should be taken without reading the fund prospectus and any fund supplement of the fund concerned.


Although the content of the website is based upon information that LIAM consider reliable or comes from sources that LIAM consider reliable, LIAM have not verified such information. Lyxor make no representation or warranty as to the accuracy, completeness or adequacy of any information.  Any reproduction, disclosure or dissemination of the materials available on the website is prohibited.



This website uses cookies to make the website work or improve your user experience. Cookies are small text files that are saved on your computer or device, which are used for several purposes such as detecting preferences and improving site navigation. By continuing to use this website you consent for cookies to be used. For more details, including how to amend your preferences, please read our [Cookies Policy] link to privacy & cookie page.

By clicking on your client type to enter the website, you shall be deemed to have represented to us that you are not a U.S. person and that you are not located in the United States of America, its territories and possessions, and any State of the United States of America and that you are authorised to receive the information to and on this website.

August, 2015





22 Jun 2017

Leading the way in liquidity


There are plenty of reasons behind our rise as Europe’s second-biggest ETF provider. Among them is the excellent liquidity we provide.


What is liquidity?

For us, it’s about helping investors trade quickly in or out of a position with minimal impact on its pricing. Three things matter most:


  • The tightness of the bid-offer spread – the difference in the price at which you can buy and sell a position.

  • The market’s depth – the size of a trade you can make at a particular spread. It’s no good if a trade becomes much more expensive when you buy or sell a lot more shares.

  • Resilience – the consistency of the previous two elements, particularly when markets are stressed. Liquidity shouldn’t disappear at the first sign of trouble.

A history of success

Our ETFs trade with some of the tightest spreads on the market – whatever the size of the transaction. And you can trade several million euros in most of our ETFs at a much lower cost than buying the equivalent basket of underlying securities.

We’ve also shown we can navigate periods of stress. For example, during the flash-crash of 24 August 2015 some S&P 500 ETFs were trading 35–40% below the index. But our ETF was never further than 1.7% away.

All of this is down to the way we’ve implemented a robust and efficient primary market over time, in turn, feeding a highly liquid secondary market for ETFs.



Putting our clients in pole position

Individual stock prices are essentially a function of supply and demand. That doesn’t work for ETFs as they have to faithfully replicate the price of the indices they track rather than the demand for them. If the FTSE 100 is falling, but there’s strong demand for our FTSE 100 ETF, we can’t allow it to rise in price. 


ETFs are open-ended funds, meaning new shares can be created whenever they’re needed or existing shares redeemed if there’s too much supply. This happens in the primary market, and is carried out by highly regulated financial institutions called Authorised Participants (APs).

We work with a large number of APs – 45 – and have been developing our relationships with them for the last 16 years. They are very diverse in company structure, geographical location and client base, meaning investors have plenty of choice in executing their trades. The competition between APs with each other for trades also helps push prices down for our clients.

Our set-up was designed with liquidity in mind. It’s flexible in terms of the sizes that can be created or redeemed, the fees we charge and the times APs can place an order. All the APs we’ve selected are committed and reliable, and we monitor their prices to ensure they fairly reflect the value of the underlying exposure. 

Together, these factors have made our primary market operation more efficient than those of many other providers.


Punching above our weight

Investors can also trade existing ETF shares among themselves in the secondary market. This occurs on stock exchanges and the over-the-counter (OTC) market. Around 60–80% of ETF flows are traded OTC in Europe, because it has generally been easier for investors to source large pools of liquidity there

Investors can trade our ETFs throughout the day on 13 of the world’s major exchanges, making it easier to move in or out when needed. We have one of the strongest networks of liquidity providers in Europe, with 23 firms registered as market makers for our ETFs on one or more European exchanges.

The upshot is we’re punching above our weight. Last year, we managed around 10% of all assets in European ETFs, but had 18% of the market’s liquidity. Nearly one in every five euros traded in ETFs on a European exchange was with us. 


A virtuous circle

Over the years we’ve developed more relationships, with more market makers, than most ETF providers. This creates competition, and leads to tighter bid-ask spreads. This prompts more demand for our ETFs from investors and higher on-exchange turnover. That then attracts more market makers, who are keen to be involved with such heavily traded ETFs. 


virtuous circle

This is no accident; it’s the result of many years of hard work. We’ve increased our AUM, developed a far-reaching range of ETFs, established strong relationships with numerous market makers and reached dedicated agreements with them to make sure our ETFs stay highly liquid. 

​The end result? When you choose Lyxor ETFs you’ll be able to trade in volume, when needed and with stable returns relative to risk.



Source: All data, Lyxor Capital Markets 15/06/2017

Connect with us on linkedin