The firm says that investors want to separate their UK and European exposures.

Exchange traded fund provider Source has launched a UK sterling version of an exchange traded fund targeting European (excluding UK) equities, tapping perceived demand for such assets.

The Source MSCI Europe ex-UK UCITS ETF will provide diversified exposure to large- and medium-sized companies across 14 developed market economies, the firm said in a statement.

It is now available in a GBP share class listed on the London Stock Exchange, with an ongoing charge of 0.2 per cent per annum.

“Many of our investors use ETFs because they offer the ability to target specific exposures,” said Chris Mellor, equity product specialist. “For instance, some investors may want to separate their exposures to Europe and the UK, especially with Brexit causing uncertainty around the outlook for the UK. This ETF effectively puts investors in control of the allocation."

WealthBriefing reported recently on the firm's recent launch in June, the Source Bloomberg Commodity ex-Agriculture UCITS ETF.