Amundi ETF has listed seven new fixed income ETFs on Euronext Paris, offering investors access to a variety of core bond exposures including global & euro government bonds; global, US & euro corporate bonds; US Treasury inflation-protected securities; and global aggregate portfolios.
Fannie Wurtz, Managing Director at Amundi ETF, Indexing & Smart Beta.
Fannie Wurtz, Managing Director at Amundi ETF, Indexing & Smart Beta, commented: “This series of launches is a new step in our commitment to offering investors a wide range of solutions to help them manage their asset allocation, particularly in fixed income, which is one of the major growth drivers in the European ETF market.
“Our fixed income indexing offering leverages the strengths of Amundi Group, a major player in bond markets with a thorough knowledge of the segment, benefitting from privileged access and competitive execution.”
Core fixed income ETFs are generally designed for buy-and-hold investors looking for a simple, low cost way to invest over the long-term in bonds. Within a single trade, the funds offer broad and diversified exposures at competitive prices, and are thus well suited as foundational building blocks for portfolio construction.
Such funds have been highlighted as key drivers in the next growth stage of the ETF revolution. This trend is indeed already under way as evidenced by strong demand for iShares’ core and fixed income suites of ETFs during 2016, attracting $67bn and $60bn of net inflows respectively. Collectively these funds accounted for over 90% of the firm’s net gatherings during the year.
The new Amundi fund launches are listed below:
The AMUNDI INDEX BARCLAYS GLOBAL AGG 500M UCITS ETF (GAGG) tracks the Barclays Global Aggregate (500 Million) Index, a reference for more than 13,000 securities – treasury bonds, govies, corporate bonds, currency, high yield, emerging debt, etc – within the investment grade universe and of which the minimum issuance size exceeds €500m. The fund’s total expense ratio (TER) is 0.20%
The AMUNDI INDEX JP MORGAN GBI GLOBAL GOVIES UCITS ETF (GGOV) tracks the JP Morgan Global Government Bond Index, providing exposure to fixed-rate government securities of 13 developed markets.
TER – 0.20%
The AMUNDI INDEX BofA MERRILL LYNCH EURO GOVIES 1-10 UCITS ETF (EGOV) tracks the Bank of America Merrill Lynch 1-10 Year Euro Government Bond Index, providing exposure to fixed-rate investment grade euro government securities with maturities between 1 and 10 years.
TER – 0.14%
The AMUNDI INDEX BARCLAYS EURO AGG CORPORATE UCITS ETF (ECRP) tracks the Barclays Euro Aggregate Corporate Index, providing exposure to corporate fixed-rate investment grade euro-denominated securities.
TER – 0.16%
The AMUNDI INDEX BARCLAYS EURO CORP BBB 1-5 UCITS ETF (EBBB) tracks the Barclays Euro Corporate BBB 1-5 Year Index, providing exposure to euro-denominated corporate bonds with a maturity between 1 and 5 years and a credit rating of BBB.
TER – 0.20%
The AMUNDI INDEX BARCLAYS US CORP BBB 1-5 UCITS ETF (UBBB) tracks the Barclays US Corporate BBB 1-5 Year Index, providing exposure to US dollar-denominated corporate bonds with a maturity between 1 and 5 years and a credit rating of BBB.
TER – 0.20%
The AMUNDI INDEX BARCLAYS US GOV INFLATION-LINKED BOND UCITS ETF (UIFL) tracks the Barclays Capital US Government Inflation-Linked Bond Index, providing exposure to the US Treasury Inflation Protected Securities (TIPS) market.
TER – 0.16%
Currently registered in 12 European countries, the ETFs are due to be rolled out across Europe’s main stock exchanges in the near future.