How closely correlated is the performance of Lyxor ETF DJ Euro Stoxx 50 with the underlying index?
Lyxor ETF DJ Euro Stoxx 50 is designed to provide investment results that correspond to the price and yield performance of the basket of shares that make up the Dow Jones EURO STOXX 50SM index. One of the market mechanisms that helps to keep trackers trading at a price close to the level of the underlying index is arbitrage. Because trackers are created in exchange for shares that make up the underlying index and can be redeemed in exchange for shares in the underlying index on any given day, arbitrage traders can profit from any price discrepancies between trackers and the related index, which helps to reduce this discrepancy.
