Amundi expands Prime ETF Range with USD Investment Grade Corporate Bond ETF
Amundi’s Prime ETF range endures an expansion. On Tuesday, 24th of September, 2019, Europe’s leading asset management company launches its tenth Prime Range ETF – all ETFs are tracking Solactive indices exclusively – to enhance its offering of price-competitive benchmark ETFs. The new ETF focuses on investment-grade US Corporate bonds, tracking one of Solactive’s flagship indices: the Solactive USD Investment Grade Corporate Bond Index. Like its nine Prime relatives, the new ETF captivates with a low expense ratio of just five basis points.
Currently harboring 5845 components, the Solactive USD Investment Grade Corporate Bond Index mirrors the performance of the largest corporate-bond market in the world. The respective ETF allows investors to access one of the most liquid global bond markets, which, compared to other larger bond segments, performed relatively well with an average yield to maturity of 3,06% and a duration of 7.83 years. Therefore, the new ETF functions as a decent diversification tool for investors seeking sound performance in current low-yield environments.
“The launch of the Amundi Prime US Corporates – Ucits ETF DR appeases the demand of investors looking for alternative fixed income vehicles in today’s low-interest-rate environment,” comments Timo Pfeiffer, Head of Research at Solactive. “The new ETF is a logical extension of the existing Prime ETF range, and we are grateful that Amundi puts its trust in Solactive’s work and chooses us yet again to set up this new benchmark ETF to enhance its benchmark ETF offering.”
Fannie Wurtz, Head of Amundi ETF, Indexing and Smart Beta comments: “Attracting more than €500m of Assets Under Management already, the Amundi Prime range has shown that it is the right solution for investors looking for simple and cost efficient portfolio building blocks. Adding US Corporates to the range demonstrates our ongoing commitment to clients, and our ability to help them navigate challenging market conditions”.
The Amundi Prime US Corporates – Ucits ETF DR starts trading on Xetra on September 24th. Future listings will include the London Stock Exchange (LSE) and Borsa Italia.