The Nomura Voltage Short-Term Source ETF aims to provide responsive and tactical exposure to volatility by tracking the Nomura Voltage Strategy Short-Term 30-Day USD TR index, an index designed to capture spikes in volatility while reducing associated slide costs.
It is dollar denominated and trades in dollars, but is domiciled in Dublin and listed on the London Stock Exchange.
This is the second Source ETF to be launched in the Nomura Voltage series, following the launch of the Nomura Voltage Mid-Term Source ETF in April 2011.
The Mid-Term version tracks the Nomura Voltage Strategy Mid-Term 30-day USD TR Index and now has over $542m.
Last week’s launch, the JP Morgan Macro Hedge Dual TR Source ETF, is a euro-denominated fund which aims to capture spikes in US equity volatility and will switch from long to long/short exposure depending on market conditions.
Source CEO, Ted Hood, said: "With the success of the existing Nomura Voltage Source ETF, we are delighted to add another Voltage product to our range. Volatility exposure is often a compromise between cost and reactivity, so it is important that investors can choose the product that best suits their needs, whether as a hedging tool or a stand-alone investment.
"This new ETF will complement Source’s existing volatility product range, which currently represents over 70% of assets in European-listed volatility ETPs."
The AMC of the fund is 0.30%.