Amundi ETF has launched a Multi Smart Beta ETF offering investors exposure to European Equities.
The ETF tracks the Scientific Beta Extended Developed Europe Multi-Beta Multi-Strategy ERC strategy index as closely as possible, whether the trend is increasing or decreasing, and will soon be listed on Euronext. It will also be cross-listed on the main European stock exchanges in the coming months.
The Scientific Beta Extended Developed Europe Multi-Beta Multi-Strategy ERC strategy index, designed by EDHEC-Risk Institute Scientific Beta, represents mid and large capitalisation stocks on developed European equity markets. It is composed of four universes based on the following risk factors: Value, Size, Momentum and Volatility, which use five weighting schemes. An ‘equal risk contribution’ weighting of the four factor portfolios is then applied.
This innovative ETF, which will have competitive ongoing charges of 0.40 per cent, seeks to meet investors’ demand for Smart Beta tools to capture risk premia and achieve potential outperformance over the long term against the equivalent cap-weighted exposure.
Valerie Baudson, CEO at Amundi ETF, Indexing and Smart Beta, says: “This innovative Multi Smart Beta ETF strengthens our Smart Beta equity range following the success of Amundi’s Global Equity Multi Smart Allocation Scientific Beta UCITS ETF, launched in 2014. These two Multi Smart Beta exposures reinforce our broad selection of mono-strategy ETFs, which already include Minimum Volatility, Mid-cap, Small-cap, Growth, Value, High Dividend and Buybacks. As we have observed the market’s increasing demand for smart beta solutions, this will be a key area of development for Amundi this year.”