Paris-based asset manager Amundi has launched a S&P 500 Equal Weight UCITS ETF which aims to provides diversified exposure to the US equity market.
The ETF will track the S&P 500 Equal Weight Index, which includes the same 500 constituents as the market capitalisation-weighted S&P 500 Index, but assigns each stock an equal weighting.
By reducing concentration risk and balancing exposure across the index, this approach should allow investors to capture economic growth across a broader range of opportunities.
With management fees of 0.12%, Amundi claims this is amongst the lowest-cost ETFs in the European UCITS market tracking this index.
In a press statement, Amundi said it had launched the ETF “in response to growing client demand for equal-weight strategies, which have historically provided a strong alternative to market-cap weighted indices”.
The firm already offers an ETF tracking the S&P 500 Equal Weight ESG Leaders Index, launched in May 2022, which has grown to nearly €3 billion in assets under management.
Benoit Sorel, Global Head of ETF, Indexing and Smart Beta at Amundi, said: “Investor demand for equal-weight strategies continues to grow as investors seek to diversify their US equity exposure and mitigate concentration risk.
“The launch of this ETF responds to this growing demand, reinforcing our commitment to providing investors with robust, cost-competitive building blocks for their portfolios.”
