Amundi has launched a new ETF providing exposure to emerging market equities with strong environmental, social, and governance (ESG) characteristics relative to their sector peers.

The ETF provides exposure to emerging market equities with strong ESG characteristics relative to their sector peers.
The Amundi MSCI Emerging ESG Leaders UCITS ETF has listed on Deutsche Börse’s Xetra (SADM GY) platform in euros and is expected to cross-list on Euronext Paris (SADM FP).
The fund has been seeded with over €500 million from Ilmarinen, Finland’s largest pension insurance company.
The ETF tracks the MSCI EM Extended ESG Leaders 5% Issuer Capped Index through direct physical replication using a sampling methodology.
The index is based on the parent MSCI Emerging Markets Index which captures large and mid-cap representation across 26 emerging market countries.
Using insights from MSCI ESG Research, the methodology first excludes companies with business activities in the alcohol, tobacco, gambling, nuclear power, and weapons industries as well as firms that are embroiled in severe ESG-related controversies.
The remaining constituents are assigned an ESG score between AAA and CCC based on the most relevant ESG factors by industry and risk exposure. The rating process aims to identify ESG leaders and laggards within each industry.
The index selects the securities with the highest ESG scores while targeting a 50% sector representation versus the parent MSCI Emerging Markets Index. Firms with ratings below BB are not eligible for inclusion. Chosen constituents are weighted by free float-adjusted market cap subject to a single issuer cap of 5%. The index is reconstituted annually in May.
The ETF comes with an expense ratio of 0.18%.
Amundi introduced its ESG Leaders suite last month with the listing of three ETFs providing exposure to global developed, US, and European stock markets. The funds come with expense ratios ranging between 0.15% and 0.18%.
Gaëtan Delculée, Head of Amundi ETF, Indexing, and Smart Beta Sales, commented, “We are pleased that Ilmarinen has partnered with Amundi – both organizations have a history of responsible investing and engaging constructively with companies. Following the extension of our responsible investment range last month with eight new Amundi equity ESG ETFs, we are proud to continue to broaden our offering with exposure to leading ESG companies in the emerging markets.”
Juha Venäläinen, Senior Portfolio Manager, Ilmarinen, added, “We invest pension assets so that the return on them also secures the pensions of future generations. Emerging market exposure is a key component of our portfolio, and we are delighted to offer our beneficiaries exposure to responsible investment opportunities in this space. Ilmarinen is an active owner and seeks to partner with asset managers who share this mission.”