AXA Investment Managers (AXA IM), the asset management arm of French insurance group AXA, has introduced three ETFs on Borsa Italiana.
AXA IM has introduced three ETFs on Borsa Italiana.
Two of the ETFs are actively managed and deliver impact strategies by targeting companies supporting biodiversity efforts and firms making a positive contribution to reducing climate change.
The third ETF, meanwhile, provides low-cost access to the Nasdaq 100.
Biodiversity
The AXA IM ACT Biodiversity Equity UCITS ETF has been listed on Borsa Italiana in euros (ABIU IM) and is also available in a euro-hedged (ABIE IM) share class.
The fund invests in companies listed worldwide and from across the market capitalization spectrum, including up to a quarter of the portfolio’s total assets in emerging market stocks and up to 10% in Chinese A-shares.
AXA IM uses a combination of qualitative and quantitative analysis to seek out companies with attractive investment fundamentals that are providing solutions for biodiversity issues such as pollution on land and water, land degradation, fauna and flora destruction, desertification, and overconsumption.
Companies that do not directly support biodiversity efforts but have high-quality operations that minimize negative biodiversity externalities will also be considered for inclusion.
The ETF comes with an expense ratio of 0.70% and is classified as an Article 9 product under the European Union’s Sustainable Finance Disclosure Regulation (SFDR).
Climate innovators
The AXA IM ACT Climate Equity UCITS ETF has also been listed on Borsa Italiana through euro-denominated (ACLU IM) and euro-hedged (ACLE IM) share classes.
The ETF follows a similar investment approach as described above but focuses on companies providing solutions for climate issues. Eligible firms include those that are producing renewable energy, removing CO2 from the atmosphere, improving the electric grid, investing in less carbon-intensive forms of agriculture and construction, and developing technologies to reduce waste.
Companies that are not directly solving climate issues but have high-quality operations that minimize negative climate externalities will also be considered for inclusion.
The ETF also has an expense ratio of 0.70% and is classified as an Article 9 product under SFDR.
Nasdaq 100
The AXA IM Nasdaq 100 UCITS ETF has been listed on Borsa Italiana in euros (ANAU IM).
The Nasdaq 100 consists of 100 of the largest US and international non-financial companies by market capitalization listed on Nasdaq, subject to various diversification requirements.
The index includes companies across major industry groups including computer hardware and software, communications, retail/wholesale trade, and biotechnology.
The ETF has an expense ratio of just 0.14%, cheaper than any other Nasdaq 100 ETF in Europe. Its closest competitors are the $220m Xtrackers Nasdaq 100 UCITS ETF and the $110m Invesco Nasdaq 100 Swap UCITS ETF, both of which have expense ratios of 0.20%.
The largest ETFs in the space include the $7.8bn iShares Nasdaq 100 UCITS ETF and the $5.9bn Invesco EQQQ Nasdaq 100 UCITS ETF which come with expense ratios of 0.33% and 0.30%, respectively.