Portuguese ETF issuer enters European market

Espírito Santo Activos Financeiros, a branch of Portugal’s Banco Espirito Santo, has launched its inaugural ETF on NYSE Euronext Lisbon.

The new ETF tracks an Iberian equity index comprising 30 Portuguese and Spanish blue chip companies.

The launch follows the strongest year in terms of product releases since the creation of the industry, according to Deutsche Bank.

The banks says three issuers have launched a total of five products - four ETFs and one ETC - on four exchanges last week, including the Deutsche Boerse, NYSE Euronext Paris, NYSE Euronext Lisbon and the London Stock Exchange.

Deutsche bank last week launched its first two physically replicated ETFs, including one based on the Stoxx Europe Christian index and one tracking the Global Fund Supporters index. Both were listed on the Deusche Boerse.

Meanwhile, markets are slowing ahead of the holiday period, with equity indices across the continent registering mixed results. In the week ending 17 December, the Eurostoxx 50 index fell 0.7%, the CAC 40 rose 0.3%, the Dax fell 0.3% and the FTSE 100 rose 1%.

Deutsche Bank says the European ETF and ETC markets followed the general market trends, while cash flow patterns reflected a slowing down ahead of year end.

The European ETP industry saw net inflows of €59m, marking a substantial decline from the €2.1bn inflow in the previous week.

Equity ETFs netted inflows of €19m, compared with €1.7bn the previous week, while fixed income ETFs experienced outflows of €202m, compared with €106m inflows the week before.

Commodity ETPs saw inflows of €234m versus €258m the previous week.