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The ETF is designed for investors seeking to capture yield from the European equity market via a
return-oriented Smart Beta approach, by providing exposure to companies performing share
buybacks, a method of distributing income to shareholders which is likely to grow in Europe.
Share buyback programs allow cash-rich companies to repurchase their own stocks. Already
widely used in the US, they should become more popular for European companies as they
represent a more efficient use of cash in a low rate environment and give companies more
flexibility than dividend programs.
Moreover, buyback programs are compelling for investors as
they can provide higher returns in a low rate environment.
The MSCI Europe Equal Weighted Buyback Yield strategy index reflects the performance of
MSCI Europe securities that have performed buybacks in the previous 12 months[[12 months preceding the last index rebalancing]]
. Moreover,
this strategy index applies an equal weight methodology, thus increasing diversification and
providing a purer exposure to the share buyback theme with a reduced bias.
Amundi ETF is launching this new product in response to client demand, following the launch of
its US buyback ETF earlier this year, which prompted interest in a European version based on the
same theme. The ETF has a TER[[TER: Total Expense Ratio or ongoing charges – annual, all taxes included. For Amundi ETF funds, the ongoing charges 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. The TER is a measure that compares the
annual total management and operating costs (all taxes included) charged to a fund against the value of that fund’s assets.]]
of 0,30% and will be made available in Paris and
subsequently the major European exchanges.
Valerie Baudson, CEO at Amundi ETF, Indexing and Smart Beta, said: “This innovative ETF adds
to our broad mono and multi Smart Beta range and reinforces the positioning of Amundi as a
leading innovative player in the European ETF market.”
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