(SP5) Multi Units Luxembourg - Ratings and Ratios

The Multi Units Luxembourg - Lyxor S&P 500 UCITS ETF (Ticker: SP5) is a passively managed, index-tracking UCITS fund designed to replicate the performance of the S&P 500® Net Total Return Index. As a UCITS-compliant fund domiciled in Luxembourg, it is structured to meet the regulatory requirements of European investors while providing exposure to one of the world’s most widely followed equity indices.

The fund’s primary objective is to minimize tracking error relative to the S&P 500® Net Total Return Index, denominated in US Dollars. This index represents 500 of the largest publicly traded companies in the US, effectively serving as a proxy for the broader US equity market. The fund employs a replication strategy, meaning it holds a representative sample of the index’s constituents to achieve its tracking objective.

For investors in hedged share classes, the fund implements a daily currency-hedging strategy to mitigate the impact of currency fluctuations between the Euro (the fund’s reference currency) and the US Dollar. This feature is particularly relevant for European investors seeking to reduce exposure to currency risk while gaining US equity market exposure.

With assets under management of approximately €3,000.88 million, the fund is one of the larger ETFs in its category. It is classified under the US Large-Cap Blend Equity category, reflecting its focus on large-cap US equities without a specific growth or value bias. The fund is listed on Euronext Paris (Exchange: PA) and is part of the Lyxor ETF product lineup, which is known for its cost-efficiency and tracking precision.

Investors should note that the fund does not provide dividend reinvestment by default, as the index it tracks is based on net total return. Additionally, the fund’s structure and hedging strategy make it suitable for investors seeking straightforward, low-cost exposure to the US large-cap equity market, with the added benefit of currency risk mitigation for hedged share classes.