Amundi S&P Eurozone PAB Net Zero Ambition UCITS ETF Acc

Issuer: Amundi ETF

Asset Class: Equity

TER: 20bps

Trading Currency: USD

Pays Income: False

Listing Date: 17 Dec 2020

Ticker: EPAB

ISIN: LU2195226068

This fund offers a targeted approach for investors looking to align their European equity holdings with the ambitious goals of the Paris Agreement. It provides exposure to a portfolio of large and mid-capitalization companies within the Eurozone, specifically selected based on their compatibility with a low-carbon future. The investment strategy is designed to replicate a Paris-Aligned Benchmark (PAB), which imposes stringent climate-related criteria. This means the portfolio exhibits a significantly lower carbon footprint compared to the broader market and adheres to a clear decarbonization trajectory year-on-year. Furthermore, the methodology includes strict exclusions, screening out companies involved in fossil fuels, controversial weapons, and those violating global norms, ensuring the investment meets high ESG standards.

By focusing on companies that are leading the transition to a more sustainable economy, the fund aims to mitigate long-term climate-related risks while capitalizing on the growth opportunities inherent in decarbonization and green innovation. The physical replication model means the fund directly holds the shares of these selected companies, providing transparent exposure. It is constructed to offer a diversified investment across various sectors within the Eurozone, but with a distinct tilt towards businesses that are better positioned for a world increasingly shaped by climate policy and consumer preferences for sustainability. This makes it a compelling option for building a climate-resilient core portfolio.

This investment is particularly well-suited for investors with a long-term horizon who wish to integrate forward-looking climate considerations into their core asset allocation. It can serve as a foundational building block for a Eurozone equity strategy or as a dedicated satellite holding to enhance the ESG profile of an existing portfolio. By investing in this product, individuals and institutions can contribute to financing the climate transition while seeking market-like returns from a diversified basket of European leaders committed to a sustainable pathway.