Amundi ETF offers a complete range of mono factor exposures at competitive pricing with two newly launched ETFs

Amundi ETF completes its mono-factor range on the MSCI Europe index by listing on Euronext Paris two new Quality and Momentum risk-factor ETFs. Amundi ETF’s comprehensive range of mono-factor exposures on European equities is offered at competitive ongoing charges [1] of only 0.23%.

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Quality and Momentum add to Amundi ETF mono-factor range

The two new ETFs offer exposure to the MSCI Europe Momentum index and the MSCI Europe Quality index respectively. They complete Amundi ETF range of mono-factor exposures on European equities, which already included size, value, low volatility, and dividends.

Through Amundi ETF range, investors have now the possibility to access all the must-have mono-factor investment bricks and to fully customize their portfolio allocation. They can decide to pick-and-choose one or more available factors according to market conditions or specific needs, or also to include all building blocks to their basket, thus constructing a full European equities mono-factor-based portfolio.

The MSCI Europe Momentum strategy index [2] emphasizes large and mid-cap stocks from the MSCI Europe index, showing the best performance during the last 6 and 12 months before the last index rebalancing date , while maintaining reasonably high trading liquidity, investment capacity and moderate index turnover.

The MSCI Europe Quality strategy index [3] enables investors to benefit from an exposure to quality growth large and mid-cap stocks inform the MSCI Europe index [4]. Stocks are identified on the basis of three main fundamental variables: high return on equity (ROE), stable yearover-year earnings growth and low financial leverage.

Amundi ETF cuts the fees on its mono-factor ETF range

Amundi ETF also announces the fee cut [5] on some of its existing mono-factor ETFs based on the MSCI Europe universe. All the range, including size, value, low volatility, dividends, momentum and quality factors, is now offered at uniform and competitive ongoing charges [6] of only 0.23%.

Factor Investing solutions: a rising demand from investors

Investors are increasingly looking for solutions to adapt their equity exposure to the current economic conditions and finding new sources of potential performance.

Factor indices can help investors to capture different risk premia available in the market, as they provide explicit exposure to underlying risk factors.

Indices - such as size, value, momentum, low volatility, quality, dividends - group securities that have similar characteristics and which are expected to behave in a similar way under certain market conditions.

Research offers substantial evidence of the advantages of Factor Investing. These advantages are related to the additional risk premium factors provide compared to classic equity exposure, and to their clear diversification benefits [7].

Fannie Wurtz, Managing Director at Amundi ETF, Indexing & Smart Beta comments: “Smart beta solutions and factor investing are some of the main investment trends we identify among European investors. We are delighted to announce these new listings today, as the development of a full range of mono and multi-factor smart beta exposures is in line with our strategy to offer a comprehensive toolbox of smart beta solutions to investors to perform their asset allocation choices, at competitive pricing.”

Next Finance , May 25

Article also available in : English EN | français FR

Footnotes

[1] Ongoing charges - annual, all taxes included. For Amundi ETF funds, the ongoing charges, as disclosed in the KIID, correspond to the Total Expense Ratio. The ongoing charges represent the charges taken from the fund over a year. When the fund has not closed its accounts for the first time, the ongoing charges are estimated. Transaction cost and commissions may occur when trading ETFs.

[2] For further information on the index methodology please refer to www.msci.com

[3] the potential outperformances of the strategy index compared to the index parent (MSCI Europe) over the long term, are not guaranteed

[4] the potential outperformances of the strategy index compared to the index parent (MSCI Europe) over the long term, are not guaranteed

[5] The ongoing charges referred to in the KIID will be updated with this new rate as of the next financial year.

[6] Ongoing charges - annual, all taxes included. For Amundi ETF funds, the ongoing charges, as disclosed in the KIID, correspond to the Total Expense Ratio. The ongoing charges represent the charges taken from the fund over a year. When the fund has not closed its accounts for the first time, the ongoing charges are estimated. Transaction cost and commissions may occur when trading ETFs.

[7] Source : Amundi Quantitative Research, February 2016

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