Lyxor Smart Overnight Return

ETF description

This ETF aims to achieve short term returns higher than the benchmark rate SONIA with extremely low volatility. SONIA stands for 'Sterling Overnight index Average', and is the average interest rate banks lend money to each other overnight.

The ETF is aimed at investors looking for a safe place to keep their money with a little more growth than a traditional savings account might offer. It invests in very short‑term, high‑quality debt from governments and companies, making it less risky. This fund may appeal to investors who need their money to be relatively accessible and want to avoid the ups and downs of the stock market.

Issuer details

Lyxor Asset Management, established in 1998, is a prominent European asset management firm. It’s known for its pioneering role in the ETF market in Europe and offers a broad range of investment products, including ETFs, active management, and alternative investment solutions. Lyxor was originally a subsidiary of Société Générale, one of the largest financial services groups in Europe. However, in 2021, it was acquired by Amundi, enhancing Amundi’s position as the largest asset manager in Europe.

Lyxor are one of the top ETF providers in Europe.

Index details

The Sterling Overnight index Average (SONIA) is a benchmark interest rate for overnight unsecured transactions in the British sterling market. It reflects the average rate paid by banks for overnight funds and is administered by the Bank of England.

This rate is significant in the financial markets as it serves as a reference rate for various financial products, including loans, derivatives, and securities. It replaced the London Interbank Offered Rate (LIBOR) for British sterling, providing a more reliable and accurate reflection of market conditions due to its basis on actual transactions rather than estimates.