Amundi, a leading European provider of exchange-traded funds, has listed two more ETFs on Deutsche Börse’s XTF segment. The ETFs track the performance of global low-carbon companies and currency-hedged exposure to Japanese companies exhibiting good corporate governance characteristics.
Amundi’s low-carbon ETF favours companies who emit low levels of carbon.
The Amundi ETF MSCI World Low Carbon UCITS ETF – EUR tracks the MSCI World Low Carbon Leaders Index, which is composed of large- and mid-cap corporations who emit low levels of carbon in their business activities.
The index tracks companies in 23 developed markets worldwide and screens constituents based on carbon emissions and fossil fuel reserves. This process should provide the investor with a portfolio that has limited exposure to carbon risk. The index also aims to maintain wide and consistent market exposure by minimising the tracking error relative to the MSCI World Index.
The Amundi ETF JPX-Nikkei 400 UCITS ETF – Daily Hedged EUR enables investors to participate in the performance of the JPX-Nikkei Index 400 while mitigating the risk that the Japanese yen will depreciate against the euro. The JPX-Nikkei 400 Index is designed to track quality, well-governed Japanese companies and employs a screening process based on efficient use of capital and investor-focused management principles.
This screening process rates each firm on quantitative measures of profitability and market capitalisation, as well as qualitative measures of corporate governance. This includes whether the firm has appointed independent outside directors, whether the firm adopts IFRS accounting standards, and the quality of disclosed earnings information. The top 400 companies, as ranked by this process, are selected for the index and weighted according to their free-float market capitalisation, with a cap of 1.5%.
The new funds have been listed on Deutsche Börse’s XTF segment and are tradable via Xetra and Börse Frankfurt. The JPX-Nikkei 400 hedged ETF carries a total expense ratio (TER) of 0.18% while the Low Carbon ETF carries a TER of 0.25%.