Amundi has launched three ETFs providing ESG-friendly exposure to global, US, and European equity markets.
The funds, which have been listed on the Euronext Paris and Xetra exchanges, come with total expense ratios (TERs) of just 0.18%.
The ETFs are linked to SRI indices from MSCI which harness data from index provider’s ESG Research team to screen the investment universes of some of its best known broad market benchmarks.
The index methodology first excludes companies involved in nuclear power, tobacco, alcohol, gambling, military weapons, civilian firearms, GMOs, and adult entertainment.
The remaining constituents are then assigned an ESG rating from MSCI ESG Research which indicates its ability to deal with ESG risks relative to sector peers. Firms with ratings below average are excluded.
The process then seeks to form a best-in-class index with risk characteristics that are similar to the parent universe. It does this by selecting companies from each sector with the highest ESG ratings that make up approximately 25% of the total market capitalization of that sector. Stocks are weighted by free float-adjusted market capitalization.
The Amundi Index MSCI World SRI UCITS ETF (WSRI FP) provides exposure to 396 constituents across 23 developed market countries globally; the Amundi Index MSCI USA SRI UCITS ETF (USRI FP) provides exposure to 149 constituents listed in the US; and the Amundi Index MSCI Europe SRI UCITS ETF (EUSRI FP) provides exposure to 115 constituents across 15 developed market countries in Europe.
Income is accumulated within each portfolio.
The new funds complement Amundi’s existing fixed income SRI products, the Amundi Index Euro Agg Corporate SRI – UCITS ETF and Amundi Index US Corp SRI – UCITS ETF, which track the Bloomberg Barclays MSCI Euro Corporate SRI and Bloomberg Barclays MSCI US Corporate SRI indices respectively.
Fannie Wurtz, Managing Director, Amundi ETF, Indexing and Smart Beta, commented: “Amundi is committed to meeting the growing need for socially responsible investment solutions. Investors will now be able to benefit from a full range of SRI ETFs, spanning both equity and fixed income, and at a competitive cost. Alongside this range of ETF and index funds, we will also continue to work closely with investors and build bespoke ESG solutions aimed at serving their particular needs.”