Solactive launches global infrastructure low earnings volatility index

Ridhima Sharma
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Solactive announced the launch of Solactive global infrastructure low earnings volatility index used as the underlying index for the annual global infrastructure Ucits ETF listed for trading today on the Euronext Paris stock exchange. The index tracks the performance of a global portfolio of 100 investable and liquid companies operating in the infrastructure space that exhibit the lowest volatility in reported earnings per share among their peers. Companies included in the index belong to sectors such as telecommunications, transportation, logistics, utilities and energy.

The Solactive global infrastructure low earnings volatility index will enhance the stability characterising such companies by focusing on reducing exposure to earnings volatility. In addition, recent months have seen governments of countries such as the US, Japan and Canada make announcements of increased infrastructure spending. Therefore, the index also allows market participants to invest in companies that are likely to be affected by new plans of government-backed investment.

Steffen Scheuble, CEO Solactive AG, commented: “There is currently a lot of demand for infrastructure-focused investing and the Solactive global infrastructure low earnings volatility index provides a cost-efficient way to gain access to this increasingly popular theme via the annual global infrastructure Ucits ETF. The index includes an additional tilt towards companies that show a relatively stable earnings trajectory.”

Matthieu Guignard, global head of product development and capital markets at Amundi ETF, Indexing & Smart Beta, said: “We’re very proud to be listing today on Euronext Paris the annual global infrastructure Ucits ETF, tracking the Solactive Global Infrastructure Low Earnings Volatility Index. This ETF adds a new brick to the Amundi ETF range on a theme that is gaining strong traction with investors. In line with Amundi ETF commitment to provide cost competitive investment solutions, this product is offered with the lowest price on the European market.”

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