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Solactive and BNP Paribas Asset Management Launch Joint ETF Product

Strategic Insights

— 1 min read

Solactive and BNP Paribas Asset Management have announced a joint ETF product, BNP Paribas Easy N Overnight ETF, which tracks the Solactive NSTR Overnight Total Return Index. This product aims to capture the daily compounded returns of the Euro Short-Term Rate (NSTR), providing a low-risk, high-clarity solution for institutional and retail investors seeking overnight exposure. The Solactive NSTR Overnight Total Return Index is part of Solactive's Money Market Index Series, designed to accurately reflect the interest accrued on notional overnight deposits with consistency and precision.

Key Takeaways:

  • The BNP Paribas Easy N Overnight ETF is the first ETF product collaboration between Solactive and BNP Paribas Asset Management, tracking the Solactive NSTR Overnight Total Return Index.
  • The Solactive NSTR Overnight Total Return Index captures the daily compounded returns of the Euro Short-Term Rate (NSTR) without applying a spread, incorporating a one-day interest rate lag, a two-day settlement offset, and a 360-day count convention.
  • The index is part of Solactive's Money Market Index Series, designed to provide precise and regulation-aligned access to euro short-term interest rates.
  • The product is designed to cater to institutional and retail investors seeking low-risk, high-clarity solutions for overnight exposure.
  • The ETF listed on 8th July on Euronext Paris and Deutsche Börse Xetra with the ticker: CASHE FP and EDEG GY respectively.
  • Timo Pfeiffer, CMO at Solactive, emphasized the significance of the ETF launch, highlighting the commitment to delivering strategic and relevant investment tools to the market.
  • Sabrina Principi, Global Head of Business Development -- ETFs and Indices at BNP Paribas Asset Management, expressed pride in the launch, noting the growing interest from investors in Euro overnight ETF strategies.

Statistics:

  • The Solactive NSTR Overnight Total Return Index captures the daily compounded returns of the Euro Short-Term Rate (NSTR).
  • The index incorporates a one-day interest rate lag, a two-day settlement offset, and a 360-day count convention.
  • The product is designed to provide a low-risk, high-clarity solution for institutional and retail investors seeking overnight exposure.
  • The ETF listed on 8th July on Euronext Paris and Deutsche Börse Xetra.

Sources:

  • Solactive
  • BNP Paribas Asset Management

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