The ETF tracks the scientific beta extended developed Europe multi-beta multi-strategy ERC strategy index (ERC) as closely as possible and will soon be listed on Euronext. It will also be cross-listed on the main European stock exchanges in the coming months.
The ERC strategy index 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.
Potential outperformance
The ETF, which will have ongoing charges of 0.40%, 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, chief executive at Amundi ETF, Indexing and Smart Beta, said: “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,” Baudson said.
