Press Releases

Solactive MicroSectors™ U.S. Big Bank Index launches, underlying new MicroSectors ETNs

Solactive is pleased to announce the Solactive MicroSectors™ U.S. Big Bank Index. The Index premiers as Solactive’s first joint collaboration with US company REX Shares, functions as the underlying for a series of long & short ETNs for sophisticated investors, and is linked only to the biggest U.S. banks. With respect to conventional sector classification, the equal-weighted index captures the ten largest securities according to free-float market capitalization from the U.S. banking sector, giving investors direct exposure to system-relevant financial companies.

U.S. banks are one of the highly traded businesses. Their aggregated performance bears the potential to express views on earnings, stress tests, the Fed, the yield curve, and more. They present data, which monetary professionals utilize to derive health indicators of the U.S. financial system. Therefore, the Solactive MicroSectors™ U.S. Big Bank Index not only allows sophisticated investors a precise exposure to the biggest banking players in the U.S. but also serves as a potential trend barometer for the entire U.S. banking sector.

Timo Pfeiffer, Head of Research at Solactive, comments: “We are proud to join forces with REX Shares in the creation of an index that could function as a benchmark index for the largest banks in the U.S. financial sector. We are looking forward to further collaborations.”

Scott Acheychek, President of REX Shares, comments: “We are excited to work with Solactive, an innovative Index provider, to expand our MicroSectors lineup. Our goal is to provide a suite of concentrated sector-specific trading products, which allow for a more targeted view in segments like Big U.S. Banks. While popular financial sector indices contain insurance companies, REITS, credit card enterprises, Solactive has allowed us to provide a specified exposure to the biggest U.S. banks.”

Current index components are, for example, Bank of America Corporation, Citigroup Inc., Goldman Sachs Group, Inc., JPMorgan Chase & Co., and Morgan Stanley.

The ETNs will be issued by Bank of Montreal on 3rd of April.