Amundi ETF has launched an exchange-traded fund designed for investors seeking to take positions on the Japanese equity market, while benefiting from daily currency hedging on NYSE Euronext in Paris.
The new ETF offers investors a solution in a context of volatile international markets and uncertainty over the euro/yen exchange rate.
Based on the Topix Euro Daily Hedged strategy index (Total Return), it combines exposure to Japanese equities with daily euro/yen currency hedging. The ETF has a TER of only 0.48 per cent.
The ETF benefits from hedging against currency risk, which is managed and adjusted daily within the Topix Total Return Euro Daily Hedged strategy index through the use of forward contracts expiring at the end of each 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: “Following the success of our ETF launched in 2011 tracking the S&P 500 EUR Daily Hedged strategy index, we wanted to offer investors the same innovative currency hedging solution but this time on the Topix, the main Japanese equity market index.”