Amundi ETF has launched an product indexed on the S&P 500 EUR Daily Hdg strategy index, on NYSE Euronext in Paris. This product is designed for investors seeking to take positions on the US equity market while benefiting from daily currency hedging.
This new ETF offer investors a solution in a context of volatile international markets and uncertainty in the euro/dollar exchange rate. Based on the S&P 500 EUR Daily Hdg strategy index, it combines exposure to the S&P 500 index with daily euro/dollar currency hedging and is offered with a TER2 of only 0.28%.
Unlike other products on the European market which offer monthly currency hedging, this ETF benefits from hedging against currency risk which is managed and adjusted daily within the strategy index through the use of forward contracts expiring at the end of the current month.
This daily readjustment reduces the influence of exchange rate volatility through the optimisation of the currency hedge.
Valérie Baudson, Managing Director of Amundi ETF, says: “This new ETF provides an innovative packaged solution for investors interested in the US market, who do not have the capacity or do not wish to manage euro/dollar currency risk themselves.”
Thierry Ancona, Head of Client Global Coverage, Executive Vice President, CA Cheuvreux, says: “This innovation will satisfy a real need expressed by certain investors and is a concrete competitively priced solution for confronting high volatility on the currency markets.”
