Amundi builds out ‘Prime’ range with UK mid & small-cap and US Treasury ETFs

Jul 22nd, 2020 | By | Category: Alternatives / Multi-Asset

Amundi has expanded its range of ‘Prime’ ETFs with the launch of two new funds providing low-cost exposure to UK mid- and small-cap equities and to short-duration US Treasury bonds.

Amundi builds out low-cost core with UK mid & small-cap and US Treasury ETFs

All of Amundi’s low-cost Prime ETFs come with expense ratios of just 0.05%.

The funds have been priced in line with existing Prime-branded ETFs and come with expense ratios of just 0.05%.

Fannie Wurtz, Head of Amundi ETF, Indexing and Smart Beta, commented, “When we launched our industry-leading low-cost range of ETFs last year, we committed to listening to our clients and developing solutions to match their needs.

“These new funds offer investors the opportunity to complement their portfolios with additional cost-effective core ETF exposures.”

The Amundi Prime UK Mid and Small Cap UCITS ETF (PRUK LN) has listed on the London Stock Exchange in pound sterling and is due to be cross-listed on Euronext Paris.

The fund tracks the Solactive United Kingdom Mid & Small Cap ex Investment Trust Index which consists of the next 150 largest equity securities listed in the UK beyond the large-cap segment, which is defined as the 100 largest UK-listed equities. The index is weighted by float-adjusted market capitalization and rebalanced on a quarterly basis. Buffer rules help to limit unnecessary turnover.

The fund becomes the cheapest ETF in Europe to provide exposure to the mid- and small-cap segment of the UK stock market. Its closest rival is the Vanguard FTSE 250 UCITS ETF (VMID LN) which costs 0.10%. VMID is the largest ETF in this category with £1.3 billion in assets under management.

Amundi’s second fund launch is the Amundi Prime US Treasury Bond 0-1 Y UCITS ETF (PR1T GY) which has listed on Deutsche Börse Xetra in euros. It is also expected to cross-list on Euronext Paris.

The fund tracks the Solactive US Treasury 0-1 Year Bond Index which offers exposure to US dollar-denominated US Treasury securities with a maturity of no more than one year.

Prior to the fund’s launch, the cheapest short-term US Treasury bond ETF in Europe was the Invesco US Treasury Bond 0-1 Year UCITS ETF (TRIA LN) which costs 0.06%.

Amundi’s prime range now comprises six equity and six fixed income exposures covering core geographical exposures. The other equity ETFs provide market-cap-weighted exposure to Europe, the eurozone, Japan, the US, and developed markets globally, while the other fixed income funds target either corporate or government bonds rated investment grade from Europe, the US, or worldwide.

All the ETFs in the range use physical replication and track indices developed by Solactive.

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