Amundi MSCI Emerging Ex China UCITS ETF Acc

Issuer: Amundi ETF

Asset Class: Equity

TER: 15bps

Trading Currency: GBP

Pays Income: False

Listing Date: 19 Nov 2024

Ticker: EMXN

ISIN: LU2009202107

This fund offers targeted exposure to emerging market equities while specifically excluding companies from China. It is designed for investors who wish to manage their China allocation separately or believe that other emerging economies offer more attractive growth prospects without the specific geopolitical and regulatory risks associated with the Chinese market. The underlying index captures large and mid-cap representation across 23 other emerging market countries, providing diversified exposure to key growth engines around the world. Major country allocations include Taiwan, India, South Korea, and Brazil, offering access to thriving sectors such as technology, financials, and materials. By removing the significant weight that China typically holds in broad emerging market indices, investors can gain a more balanced exposure to the growth stories of other developing nations.

This investment vehicle provides a strategic tool for portfolio construction within an emerging markets allocation. The exclusion of China significantly alters the portfolio's risk and return profile when compared to standard emerging market funds. Investors might utilize this product to complement a separate, dedicated China-focused investment or to deliberately underweight their overall exposure to the Chinese economy. It is suitable for those seeking long-term capital appreciation from a diversified basket of companies in developing economies, and who believe in the long-term potential of markets like India, Taiwan, and Brazil to drive global economic expansion. The accumulating share class structure means that any dividends paid by the underlying holdings are automatically reinvested, which can enhance returns over time through the power of compounding.