Amundi cross-lists four ETFs on Xetra and Borsa Italiana

Dec 3rd, 2019 | By | Category: Alternatives / Multi-Asset

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Amundi has cross-listed an assortment of ETFs on Xetra and Borsa Italiana.

Amundi cross-lists four ETFs on Xetra and Borsa Italiana

Amundi has cross-listed four ETFs on Xetra and Borsa Italiana.

The listings consist of an ESG-screened corporate bond ETF, a ‘breakeven inflation’ ETF, and a pair of thematic equity ETFs.

The ETFs trade in euros.

ESG euro corporate bonds

The Amundi Index Euro Corporate SRI 0-3Y – UCITS ETF DR (ECR3 GY; ECRP3 IM) is linked to the Bloomberg Barclays MSCI Euro Corporate ESG BB+ Sustainability SRI 0-3 Year Index.

The index comprises investment-grade, euro-denominated, fixed-rate bonds with a remaining maturity of between one month and three years and a minimum par amount outstanding of €300 million.

Constituent issuers must also command an MSCI ESG Rating of at least ‘BB’ based on an assessment of the issuer’s exposure to industry-specific ESG risks and its ability to manage those risks relative to peers.

Issuers involved in business activities deemed inconsistent with certain values-based criteria, such as activities related to alcohol, tobacco, military weapons, civilian firearms, gambling, adult entertainment, GMO and nuclear power, are also excluded.

The fund comes with an expense ratio of 0.12%

Breakeven inflation

The Amundi Index Breakeven Inflation USD 10Y UCITS ETF (AFI1 GY; BINFU IM) targets the spread between conventional fixed-rate US Treasury bond yields and those of inflation-linked bonds, thus offering a play on inflation expectations without exposing the investor to changing interest rates.

It is linked to the Markit iBoxx USD Breakeven 10-Year Inflation (Futures) Index which consists of long positions in the eight Treasury Inflation-Protected Securities (TIPS) with remaining maturities closest to ten years, and a short position in the Ultra 10-Year Treasury Note futures contract.

Eligible TIPS for the long position must have at least $5 billion outstanding. They are weighted by market capitalization subject to a cap of 30%.

The number of Ultra 10-Year Treasury Note futures contracts sold in the short position is set in order to have an index modified duration closest to zero.

An increase in inflation expectations will lead to an appreciation of the index’s value as increasing inflation expectations cause the yields on non-inflation protected bonds to rise and their prices to fall, thus increasing the value of the short position in the portfolio.

The fund comes with an expense ratio of 0.16%.

Smart City

The Amundi Smart City UCITS ETF (AMEC GR; SCITY IM) is linked to the Solactive Smart City Index which selects its constituents from a universe of global stocks with market capitalizations greater than €1 billion and average daily trading values of at least €5 million.

The methodology first draws upon research from ISS ESG, the responsible-investment arm of Institutional Shareholder Services (ISS), to exclude firms involved with controversial weapons as well as those that are in violation of the UN’s Global Compact principles.

The remaining firms are then screened according to the FactSet Revere Business Industry Classification System (RBICS) to assign relevant firms to one of six categories – public infrastructure, smart homes, e-commerce, healthcare, entertainment, and technology.

Eligibility for the above categories is based on company business activities that are related to the development of smart cities including smart mobility, smart infrastructure, smart waste management solutions, smart security, Internet of Things, and wireless connectivity, amongst others.

Each of the six index categories is weighted equally and, similarly, within each category, each constituent is weighted equally, subject to a maximum index security weight of 2%. The index is reconstituted and rebalanced quarterly.

The fund comes with an expense ratio of 0.35%.

Smart factory

The Amundi Smart Factory UCITS ETF (540S GR; SMAFY IM) is linked to the Solactive Smart Factory Index which follows a similar methodology to that of the index underpinning the smart city ETF.

The parent universe undergoes ISS ESG’s socially responsible evaluation before the remaining constituents are screened according to the FactSet RBICS. Relevant firms are assigned to one of five categories – advanced robotics, cloud & big data, cybersecurity, augmented reality & 3D printing, and the Internet of Things (IoT) based on business activities related to the smart factor theme. These activities include factory automation, enterprise management software, network security software, virtual reality engineering software, and household robot makers, amongst others.

The index utilizes the same weighting methodology as in the smart cities index. The fund comes with an expense ratio of 0.35%.

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