ETF, Indexing and Smart Beta
Amundi ETF, Indexing and Smart Beta is one of Amundi’s strategic business areas and is a key growth driver for the Group.
Amundi ETF, Indexing and Smart Beta business line provides investors - whether institutionals or distributors - with robust, innovative, and cost-efficient solutions, leveraging Amundi Group’s scale and large resources.
A leading partner in Indexing & Smart Beta solutions
Fannie WurtzBeing part of Amundi enables us to offer ETF, Indexing and Smart Beta innovative and cost-competitive solutions to investors of all stripes, widely recognized all over the world. Partnering with investors is at the core of our development: this continuous dialogue implies taking into consideration their needs, objectives and constraints (risk budget, ESG filters, low carbon, etc) to help them navigate all market conditions.
Head of Distribution & Wealth Division, Passive & Alternative business lines, Amundi
Amundi ETF – competitive and innovative
As a leading European ETF provider, Amundi's broad range of products stands out particularly for its competitive pricing and product innovation underpinned by our approach of listening closely to our clients to understand their precise needs.
Our range of products encompasses over 300 ETFs providing choice for investors across asset classes, geographies, sectors and themes.
We are committed to responsible investing. It is a founding pillar of Amundi, and ESG is at the core of our ETF, indexing and smart beta offering.
A useful tool in an investor’s portfolio
The global ETF market has grown considerably over the last decade. ETFs, also known as ‘trackers’, aim to replicate as closely as possible the performance of their benchmark index, whether it rises or falls. They combine the advantages of index funds (compliant with European UCITS IV regulations) with those of equities (easy to buy and sell).
Leading European ETF provider
One of the most compelling ETF ranges available – with ESG at the core
We are the largest European ETF provider, with more than €182 billion2 in assets under management. But we’re aiming far higher – both for you and for ourselves.
We’re setting out to build the European ETF champion you deserve and raise the bar for our entire industry.
We currently offer over 300 products1, all complying with European UCITS standards. Our comprehensive and cost-efficient range of ETFs comprises some of the most compelling strategies in ESG, Thematics, Emerging markets and Fixed income.
Our vision for ETF investing is based on authenticity, creativity and deep relationships.
- Partnership: As proactive problem solvers, we’ll take the time to listen to, and work with, you to solve today’s investment challenges.
- Innovation: As relentless innovators, our mission is to anticipate key investment trends and keep you one step ahead.
- Responsible: As one of the most responsible of investors*, it’s our duty to drive the industry forward and demonstrate just what responsible investing really means.
*Amundi is one of the world leaders in responsible investing with more than 40% of total AUM in responsible investments (as at 31/12/2022).
Amundi ETFs are listed on major stock exchanges including: Euronext Paris, Xetra, London Stock Exchange, Borsa Italiana, SIX, Euronext Amsterdam, Bolsa Mexicana de Valores.
With offices in over 35 countries across Europe, Asia, the Middle East and the Americas, our local experts are on hand to work with you to find solutions to your unique investment challenges.
We continue to export our UCITS ETF expertise and range all over the world, with listings in Mexico for instance since 2018.
The European ETF Champion
We are the largest European ETF provider, with more than €182 billion2 in assets under management. But we’re aiming far higher – both for you and for ourselves.
We are the largest European ETF provider, with more than €182 billion2 in assets under management. But we’re aiming far higher – both for you and for ourselves.
We’re setting out to build the European ETF champion you deserve and raise the bar for our entire industry.
We currently offer over 300 products1, all complying with European UCITS standards. Our comprehensive and cost-efficient range of ETFs comprises some of the most compelling strategies in ESG, Thematics, Emerging markets and Fixed income.
PARTNERSHIP, INNOVATION AND RESPONSIBLE INVESTING
Our vision for ETF investing is based on authenticity, creativity and deep relationships.
Our vision for ETF investing is based on authenticity, creativity and deep relationships.
- Partnership: As proactive problem solvers, we’ll take the time to listen to, and work with, you to solve today’s investment challenges.
- Innovation: As relentless innovators, our mission is to anticipate key investment trends and keep you one step ahead.
- Responsible: As one of the most responsible of investors*, it’s our duty to drive the industry forward and demonstrate just what responsible investing really means.
*Amundi is one of the world leaders in responsible investing with more than 40% of total AUM in responsible investments (as at 31/12/2022).
Dedicated local teams
Amundi ETFs are listed on major stock exchanges including: Euronext Paris, Xetra, London Stock Exchange, Borsa Italiana, SIX, Euronext Amsterdam, Bolsa Mexicana de Valores.
Amundi ETFs are listed on major stock exchanges including: Euronext Paris, Xetra, London Stock Exchange, Borsa Italiana, SIX, Euronext Amsterdam, Bolsa Mexicana de Valores.
With offices in over 35 countries across Europe, Asia, the Middle East and the Americas, our local experts are on hand to work with you to find solutions to your unique investment challenges.
We continue to export our UCITS ETF expertise and range all over the world, with listings in Mexico for instance since 2018.
Fannie WurtzETFs are remarkable tools which can empower even more investors to invest even more meaningfully, all over the world. All it will take is the right kind of provider. Our mission is to be that provider.
Head of Distribution & Wealth Division, Passive & Alternative business lines, Amundi
Your European partner for indexing
We provide excellent equity and bond index management by drawing on our extensive experience, comprehensive in-house research and wide knowledge of asset classes and indices.
Index management from one of the leading asset managers
Competitive and innovative service offering
Using the significant resources and bargaining power of one of the world’s leading asset managers, our index management team is able to negotiate competitive prices. At each step of the investment process, particular attention is paid to risk, liquidity, transparency and cost.
The index management is fully involved in the Responsible Investing policy of Amundi, through the voting policy of the group and the solutions developed. Investors can customise their investment choice depending on their specific requirements to be ethical, low-carbon and/or conform to certain environmental, social and governance (ESG) criteria.
We can replicate all types of Smart Beta indexes from any index provider (MSCI, FTSE, ERI Scientific Beta, etc.) using either a mono or multi Smart Beta approach.
Risk control and cost optimisation
Using the significant resources and bargaining power of one of the world’s leading asset managers, our index management team is able to negotiate competitive prices. At each step of the investment process, particular attention is paid to risk, liquidity, transparency and cost.
Using the significant resources and bargaining power of one of the world’s leading asset managers, our index management team is able to negotiate competitive prices. At each step of the investment process, particular attention is paid to risk, liquidity, transparency and cost.
An SRI approach to index management
The index management is fully involved in the Responsible Investing policy of Amundi, through the voting policy of the group and the solutions developed. Investors can customise their investment choice depending on their specific requirements to be ethical, low-carbon and/or conform to certain environmental, social and governance (ESG) criteria.
The index management is fully involved in the Responsible Investing policy of Amundi, through the voting policy of the group and the solutions developed. Investors can customise their investment choice depending on their specific requirements to be ethical, low-carbon and/or conform to certain environmental, social and governance (ESG) criteria.
Your Smart Beta investment partner
We can replicate all types of Smart Beta indexes from any index provider (MSCI, FTSE, ERI Scientific Beta, etc.) using either a mono or multi Smart Beta approach.
We can replicate all types of Smart Beta indexes from any index provider (MSCI, FTSE, ERI Scientific Beta, etc.) using either a mono or multi Smart Beta approach.
Smart Beta & Factor Investing
Smart Beta & Factor Investing strategies have been developed by academic experts and practitioners to address the two main limits of traditional market capitalization weighted indices.
Firstly, these indices do not adequately capture rewarded risk premia. Secondly, risk tends to be concentrated in few stocks or sectors.
In response, different approaches have emerged with the objective to outperform and/or optimize risk vs cap-weighted indices. Even if there is no widely accepted definition, these Smart Beta strategies generally cover Risk-Efficient Solutions and Factor Investing.
Smart Beta & Factor Investing by Amundi
In a context of more frequent equity market shocks and higher volatility, investors are looking for new solutions providing robust performance and controlled - even exploited - risks.
In order to answer these new needs, Amundi offers a complete range of Smart Beta & Factor Investing solutions, managed by a team of dedicated experts.
Philosophy
Bruno TaillardatAt Amundi, we are convinced that it is necessary to focus on risk management to generate a strong performance over the long term.
Global head of Smart Beta & Factor Investing, Amundi
For a long time, traditional equity investing has aimed at generating returns rather than managing risk. But in recent years institutional investors have started to change their attitude: mitigating risk is now more important than maximizing returns. The regulatory environment also leads to narrow capital requirement - and therefore the involved risks - without deteriorating performance.
Investors are thus increasingly wishing to conceive their allocation in terms of risks, rather than by country or sector.
To properly manage multi-dimensional risks, only a scientific and disciplined portfolio construction process can enhance diversification for better long-term performance.
The question is no longer why Smart Beta, but how to embrace it. Amundi mobilized the best of its resources (management teams, Research, Analysts, etc.) to identify, define and accompany the implementation of the Smart Beta strategy that fits the most the objectives and constraints of each investor.
Within product offering investors can find the:
- Risk-Efficient Solutions│To avoid unrewarded risk premia
- Factor Investing Solutions│To make the most of risk premia
In addition to open-ended funds, we can also provide investors with added-value services, to analyze their portfolios identify factor or risk biases that may affect negatively their performance.
They can also benefit from our ability to build customized Smart Beta investment solutions, taking into account additional constraints such as ESG, Low Carbon, exclusions in terms of sectors or countries.
A risk-oriented allocation
For a long time, traditional equity investing has aimed at generating returns rather than managing risk. But in recent years institutional investors have started to change their attitude: mitigating risk is now more important than maximizing returns. The regulatory environment also leads to narrow capital requirement - and therefore the involved risks - without deteriorating performance.
For a long time, traditional equity investing has aimed at generating returns rather than managing risk. But in recent years institutional investors have started to change their attitude: mitigating risk is now more important than maximizing returns. The regulatory environment also leads to narrow capital requirement - and therefore the involved risks - without deteriorating performance.
Investors are thus increasingly wishing to conceive their allocation in terms of risks, rather than by country or sector.
To properly manage multi-dimensional risks, only a scientific and disciplined portfolio construction process can enhance diversification for better long-term performance.
A holistic approach to Smart Beta
The question is no longer why Smart Beta, but how to embrace it. Amundi mobilized the best of its resources (management teams, Research, Analysts, etc.) to identify, define and accompany the implementation of the Smart Beta strategy that fits the most the objectives and constraints of each investor.
The question is no longer why Smart Beta, but how to embrace it. Amundi mobilized the best of its resources (management teams, Research, Analysts, etc.) to identify, define and accompany the implementation of the Smart Beta strategy that fits the most the objectives and constraints of each investor.
Within product offering investors can find the:
- Risk-Efficient Solutions│To avoid unrewarded risk premia
- Factor Investing Solutions│To make the most of risk premia
Building tailor–made Smart Beta & Factor Investing solutions
In addition to open-ended funds, we can also provide investors with added-value services, to analyze their portfolios identify factor or risk biases that may affect negatively their performance.
In addition to open-ended funds, we can also provide investors with added-value services, to analyze their portfolios identify factor or risk biases that may affect negatively their performance.
They can also benefit from our ability to build customized Smart Beta investment solutions, taking into account additional constraints such as ESG, Low Carbon, exclusions in terms of sectors or countries.
Smart Beta - Dynamic Factor Allocation
A step further in risk management with Smart Beta and Factor Investing
Assets in Smart Beta funds are at an all-time high, showing compound average growth of more than 30 percent over the past five years, as investors seek new ways of managing risk and enhancing their portfolios’ performance. Interest in the investment approach was initially triggered by the difficulty investors were having in finding performance through traditional management based on the expected return from equities, mainly because of market shocks over the last decade. Smart Beta and Factor Investing solutions were able to bridge this divide, providing enhanced long-term potential performance by focusing on managing risk. It’s now a firmly established investment strategy, poised for further growth as it meets investors’ new expectations in terms of risk management.
“Smart Beta is growing very quickly. A lot of it is people moving from actively managed funds and traditional passive approaches and we see no let-up in the assets that are flowing towards this,” says Nick Motson, Associate Dean, MSC program, Cass Business School. According to figures from Morningstar, assets under management in Smart Beta funds are on track to hit $1 trillion by the end of this year.
For investors, research has shown clear benefits. The Cass Business School carriedout a study comparing how non cap-weighted strategies would have performed compared with traditional index weighted ones from 1968 to 2011. It found all of the Smart Beta exposures provided a better risk-adjusted return.
Bruno TaillardatIt’s a way to be fully exposed to equities with the objective to reduce the risk that is going to cut into the performance.
Global head of Smart Beta & Factor Investing, Amundi
“It’s a way to be fully exposed to equities with the objective to reduce the risk that is going to cut into the performance,” explains Bruno Taillardat, Global Head of Smart Beta and Factor Investing at Amundi, a French asset management firm with more than €1.90 trillion5 under management. Traditional equity funds typically allocate money to companies based on their market capitalisation. As a result, a large company will get a larger weighting, even if other pointers dictate that it may be overvalued. Diversification in these traditional funds has come from combining sectors, or geographies that will perform differently according to the prevailing economic cycle. Smart Beta and Factor Investing solutions diversify differently, tilting exposure towards ‘factors’ that have been proven historically to capture risk premia. These factors can include dividend yield, price momentum, volatility and the relative value to peers, and each will perform differently depending on market and economic cycles.
By combining these different factors, it’s possible to create a highly diversified portfolio that can be tailored to fit a broad spectrum of investment objectives. For example, a portfolio of value stocks, which hold the potential for higher growth, but also higher risk, can be balanced with shares in companies that have historically been shown to have low volatility, providing a defensive hedge. “It’s perhaps best used, using a multi-diversified factor approach that can then enhance returns,” says Richard Dell, Global Head of Equity at Mercer, a global consulting firm.
Smart Beta and Factor Investing are based on an objective set of investment criteria, providing a high level of transparency for the investor. They can also provide the groundwork for a bespoke investment solution, for example for an investor whose concern may be to maintain a low carbon footprint, or abide by ethical and social governance criteria. At present, the majority of Smart Beta funds are linked to the equity markets, although the same rationale can equally be applied to fixed-income. Investor concerns about low yield, volatility fears and credit risk all provide fertile ground for the expansion of Smart Beta and Factor Investing bond products.
“Factors should be seen as a way to better diversify the different assets, so no longer focusing only on equities but also trying to find the best instruments in fixed income or other asset classes,” says Bruno Taillardat. With investors embracing strategies to focus on risk to enhance performance, Smart Beta and Factor Investing have taken root as a thriving sector in the equity fund management universe... and which now have other asset classes in its sights.
Working with recognized partners
Maximizing diversification in order to capture the risk premium of an asset class
Thought Leadership
14 March, 2018
“Investing in equity factors for the long run” - A Thinking Ahead Institute practical guide co-authored with Amundi
Amundi Smart Beta Viewpoint series
4 April, 2023
Viewpoint - Integrating Net Zero objectives into Multi-Factor Equity portfolios
17 January, 2022
Viewpoint - Factor investing: a different approach to seeking market performance
18 November, 2021
Viewpoint - The Time is Now to Act – Conservatively
29 March, 2021
Viewpoint - Understanding performance equity value factor
11 March, 2021
Viewpoint - Looking for Value across
14 December, 2020
Risk Premia investing: Covid-19 outbreak and beyond
9 October, 2020
Viewpoint - Factor investing Beyond the Covid-19 crisis-2020
19 June, 2020
Viewpoint - Equity-factor-behaviour-Q1-2020
15 May, 2020
2020.05 - Viewpoint - ESG factor investing - EN
1 February, 2018
Factor investing Diversify risks to enhance long term performance
13 October, 2017
2017.04.28 - Viewpoint Alternative Risk Premia - EN
25 April, 2017
Positioning Value in portfolio construction
21 February, 2017
Practical applications of smart beta
30 November, 2016
Using factor investing
9 October, 2018
Viewpoint - Deep dive in factors behaviors and combination
International industry recognition
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ETF STREAM AWARDS 2022 |
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ESG ETF Issuer of the year |
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ESG CLARITY AWARDS 2022 |
| UK ESG Equity Passive - Amundi MSCI UK IMI SRI PAB |
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MONDO ETF AWARDS 2022 |
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1 All figures and data are provided by Amundi ETF, Indexing & Smart Beta as of 31/03/2023
2 Source: Amundi ETF, ETC Gold included, as at 31/03/2023
3 Source: ETFGI, June 2023, Amundi ETF is the leading European headquartered ETF provider within the European market.
4 Source: IPE “Top 500 Asset Managers” published in June 2023, based on assets under management as at 31/12/2022
5 Source: Amundi data as at 31/03/2023
