ISEQ launches its first ETFs

THE Irish Stock Exchange will launch its first Exchange Traded Fund (ETF) on Friday, it said yesterday.

The ISE had hoped to start trade in the new fund in the first quarter of 2005, but final regulatory approval took slightly longer than expected.

ETFs, which are listed baskets of stocks that represent a particular index, are becoming an increasingly important segment of global equities. The instruments are listed and traded like stocks, but track indices of equities, bonds and other assets without requiring the investor to buy all the index components.