AMUNDI LISTED TWO ETFS IN PARIS
European ETF provider Amundi this week expanded its product offering by launching two new funds on the Paris stock exchange. The first gives investors exposure to around 20 stocks in the European energy sector and replicates the performance of the MSCI Europe Energy index. The second tracks the EuroMTS AAA Government index, which consists of debt securities issued by Eurozone member states with at least three ratings equivalent to AAA. The energy ETF has a total expense ratio of 0.25 per cent while the fixed income fund costs 0.14 per cent.
GROWING DEMAND FOR SUSTAINABLE ETFS
Industry experts anticipate an increase in demand for sustainable ETFs, according to UK Sustainable Investment and Finance (UKSIF) in its latest report The Future of Investment: Sustainable Index Investing. Penny Shepherd, chief executive of UKSIF, said: “Institutional and high net worth investors are increasingly looking at sustainable indexes for both products and performance measurement.” By investing via ETFs, retail investors can get accessible and affordable exposure to such sustainable indices, the report added.
FIRST CURRENCY-HEDGED ETFS IN EUROPE
BlackRock’s ETF division iShares last Friday launched the first currency hedged equity ETFs in Europe. The new funds, which are physically replicated, enable investors to invest internationally and hedge currency exposure in one trade. BlackRock said the indices incorporate a monthly currency hedge, with exposure hedged using one-month forward FX contracts. It warned that forex exposure would be reduced rather than eliminated. State Street Global Markets has been appointed to manage the currency hedge.