Paris-based asset manager Amundi has launched what it claims to be the first Ucits ETFs weighted by gross domestic product, one of them an equity ETF and the second a fixed-income ETF.
Both funds are designed for investors seeking solutions to challenge diversification of market capitalisation weighted exposure and looking to reflect the footprint of the global economy, by weighing countries according to their share of global GDP.
Benoit Sorel, Head of ETF & Index business line at Amundi commented: “Today’s market environment requires investors to strengthen the resilience of their portfolio and adapt to an investment landscape where diversification is one of the most effective response.
“Backed by our product innovation DNA, we are pleased to introduce these new tools, which allow clients to capture global growth on the long-term by reflecting the economic footprint of each region, and to broaden diversification through a balanced allocation across geographies.”
In a press release, Amundi said that a GDP-weighted approach “more accurately captures the economic footprint of each region, increasing exposure to emerging economies and Europe, areas which remain under-represented in traditional market-capitalisation indices despite their contribution to global growth.
“China and emerging countries account for more than 40% of global GDP, and continue to offer the strongest growth prospects. This approach can help investors capture the long-term growth potential of these economies while reducing reliance on a small number of large companies or dominant markets within a global allocation.”
