Amundi launches S&P 500 EUR Daily Hedged ETF

Dec 6th, 2011 | By | Category: Equities

Amundi has launched the Amundi ETF S&P 500 EUR Hedged Daily on NYSE Euronext in Paris. The fund is designed for European investors seeking to take positions on the broad US equity market, as represented by the S&P 500 Index, without being exposed to adverse currency movements.

Amundi launches S&P 500 EUR Daily Hedged ETF

The fund is designed for European investors seeking to take positions on the broad US equity market, without being exposed to currency movements.

With uncertainty surrounding the future direction of both the dollar and the euro, the Amundi ETF helps EUR-based investors isolate the US equity return, while minimising inadvertent currency risk.

Unlike other products on the European market which offer monthly currency hedging, this particular 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.

Commenting on the launch, Valérie Baudson, Managing Director of Amundi ETF said: “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.”

Meanwhile, Thierry Ancona, Head of Client Global Coverage at CA Cheuvreux, stated, “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.”

The fund’s total expense ratio, or TER, is a reasonable 0.28%.

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