French exchange-traded fund provider Amundi ETF has launched the first European Equity Multi Factor Market Neutral ETF, aimed at offering investors the long-term potential of factor risk premia while protecting them from the exposure of European equity markets.
This new European Equity Multi Factor Market Neutral Ucits ETF is already available on the Euronext Paris and will be also listed on the main European stock exchanges in the coming weeks.
The underlying index, the iSTOXX Europe Multi-Factor Market Neutral strategy index, is based on:
- a long exposure into the iSTOXX Europe Multi Factor strategy index (net return), made of 6 factors (carry, low risk, momentum, size, value and quality).
- a short position against the STOXX Europe 600 Futures Roll EUR Excess Return index to achieve the market neutral stance.
Fannie Wurtz, managing director at Amundi ETF, Indexing & Smart Beta, said: “In today’s low yield environment, investors are on the lookout for new ways to generate return and diversify their portfolios. We’re proud to be the first in Europe to offer a cost-efficient all-in-one European Equity Multi Factor Market Neutral Ucits ETF with 0.55% on-going charges. This new ETF shows our ongoing determination to give investors transparent and effective investment solutions.”