Amundi has launched two ETFs in its ESG low tracking error range: the Amundi MSCI USA Screened Ucits ETF and the Amundi MSCI World Screened Ucits ETF.
The two passively managed ETFs address the demand for responsible investing with performances aligned with major indices through a low tracking error approach, according to the asset manager.
The funds are designed to minimise the performance gap with benchmark indices while respecting investors’ extra-financial considerations, added Amundi.
All three ETFs in the range use physical replication and are classified as Article 8 under the EU’s Sustainable Finance Disclosure Regulation.
German ESG market shifts toward defence sector
Under the Sustainable Finance Disclosure Regulation (SFDR), Articles 6, 8, and 9 classify funds based on their approach to sustainability. Article 6 funds are those that do not integrate sustainability into their investment process, focusing primarily on financial returns without specific ESG considerations. Article 8 funds, often referred to as “light green” funds, promote environmental and social characteristics but do not have sustainability as their core objective. These funds include ESG factors in their investment decisions, though they may still invest in companies without high sustainability standards. In contrast, Article 9 funds, or “dark green” funds, aim for sustainable investments as a primary objective, targeting measurable environmental or social outcomes.
Benoît Sorel, global head of ETF & indexing at Amundi, commented: “This launch reflects our commitment to offering responsible investment solutions that allow our clients to invest in line with their convictions, with clearly defined ESG criteria. This new range combines extra-financial standards with low tracking error — a key current expectation.”
