BNP Paribas Asset Management has launched three new smart beta ETFs giving investors access to high dividend-paying stocks in the US and Europe, and undervalued stocks in the US.
Isabelle Bourcier, head of ETF & Index activity at within BNP Paribas Asset Management.
The BNP Paribas Easy Equity Dividend Europe UCITS ETF (EDEU), the BNP Paribas Easy Equity US UCITS ETF (DIUS) and the BNP Paribas Easy Equity Value US UCITS ETF (EVUS) have been listed on Xetra and Euronext Paris, and bring the total number of smart beta ETFs offered by BNP Paribas to 14.
Isabelle Bourcier, head of ETF and index activity, BNP Paribas Asset Management, commented: “The launch of these new ETFs underlines our desire to continue expanding our range of smart beta investment solutions and meets genuine client demand for portfolio diversification.
“The continued development of our smart beta range draws on the recognised expertise of our indexed fund research and management teams, as well as competitive management fees.”
EDEU tracks the BNP Paribas High dividend Europe Equity Index, which provides exposure to a basket of European shares that currently pay high dividends and are expected to do so sustainably in the future. The largest components are Taylor Whimpey (4.3%), BMW (4.0%) and Daimler (3.9%). In the year to 25 September 2017, the index returned 16.9%.
DIUS tracks the BNP Paribas High Dividend Yield US Equity Long Index, which gives exposure to US stocks that currently have a high dividend yield and are expected to continue to maintain this in the future. Gilead Sciences, General Motors and Velero Sciences are the largest components, each with a weight of approximately 2.8% in the portfolio. It has returned 13.9% in the year to 25 September.
EVUS tracks the BNP Paribas Equity Value US Index, which provides exposure to shares of US companies that appear undervalued based on an analysis of various fundamentals. Current index members include Apple, Ford, Xerox and TMobile US, all with a weight of 2.0%. In the year to 25 September, the index returned 13.0% compared to 17.7% returned by the S&P 500 Index.
The new additions flesh out BNP Paribas’ smart beta ETF lineup which already includes European equity momentum, quality and value funds, as well as low volatility funds focused on Europe, Germany and US equity respectively.
All three ETFs have a total expense ratio of 0.30%.