This post is also available in: 
Français
Quality and Momentum add to Amundi ETF mono-factor range
The two new ETFs offer exposure to the MSCI Europe Momentum index and the MSCI
Europe Quality index respectively. They complete Amundi ETF range of mono-factor
exposures on European equities, which already included size, value, low volatility, and
dividends.
Through Amundi ETF range, investors have now the possibility to access all the must-have
mono-factor investment bricks and to fully customize their portfolio allocation. They can
decide to pick-and-choose one or more available factors according to market conditions or
specific needs, or also to include all building blocks to their basket, thus constructing a full
European equities mono-factor-based portfolio.
The MSCI Europe Momentum strategy index[[For further information on the index methodology please refer to www.msci.com
]]
emphasizes large and mid-cap stocks from the MSCI Europe index, showing the best performance during the last 6 and 12 months before
the last index rebalancing date , while maintaining reasonably high trading liquidity,
investment capacity and moderate index turnover.
The MSCI Europe Quality strategy index[[the potential outperformances of the strategy index compared to the index parent (MSCI Europe) over the long term, are not guaranteed]]
enables investors to benefit from an exposure to
quality growth large and mid-cap stocks inform the MSCI Europe index[[the potential outperformances of the strategy index compared to the index parent (MSCI Europe) over the long term, are not guaranteed]]. Stocks are identified
on the basis of three main fundamental variables: high return on equity (ROE), stable yearover-year
earnings growth and low financial leverage.
Amundi ETF cuts the fees on its mono-factor ETF range
Amundi ETF also announces the fee cut[[The ongoing charges referred to in the KIID will be updated with this new rate as of the next financial year.
]]
on some of its existing mono-factor ETFs based on
the MSCI Europe universe. All the range, including size, value, low volatility, dividends,
momentum and quality factors, is now offered at uniform and competitive ongoing charges[[ Ongoing charges – annual, all taxes included. For Amundi ETF funds, the ongoing charges, as disclosed in the KIID, correspond to the Total
Expense Ratio. The ongoing charges represent the charges taken from the fund over a year. When the fund has not closed its accounts for the
first time, the ongoing charges are estimated. Transaction cost and commissions may occur when trading ETFs.]]
of only 0.23%.
Factor Investing solutions: a rising demand from investors
Investors are increasingly looking for solutions to adapt their equity exposure to the current
economic conditions and finding new sources of potential performance.
Factor indices can help investors to capture different risk premia available in the market, as
they provide explicit exposure to underlying risk factors.
Indices – such as size, value, momentum, low volatility, quality, dividends – group securities
that have similar characteristics and which are expected to behave in a similar way under
certain market conditions.
Research offers substantial evidence of the advantages of Factor Investing. These
advantages are related to the additional risk premium factors provide compared to classic
equity exposure, and to their clear diversification benefits[[Source : Amundi Quantitative Research, February 2016]].
Fannie Wurtz, Managing Director at Amundi ETF, Indexing & Smart Beta comments: “Smart
beta solutions and factor investing are some of the main investment trends we identify
among European investors. We are delighted to announce these new listings today, as the
development of a full range of mono and multi-factor smart beta exposures is in line with our
strategy to offer a comprehensive toolbox of smart beta solutions to investors to perform their
asset allocation choices, at competitive pricing.”
Add Comment