Amundi JPX-Nikkei 400 UCITS ETF - DAILY HEDGED USD (C)

Issuer: Amundi ETF

Asset Class: Equity

TER: 18bps

Trading Currency: USD

Pays Income: False

Listing Date: 22 Mar 2018

Ticker: JPHU

ISIN: LU1681039217

This investment vehicle offers targeted exposure to the Japanese equity market by tracking an index composed of 400 prominent companies listed in Japan. The underlying benchmark is constructed to focus on companies with high appeal to investors, utilizing quantitative factors such as return on equity (ROE) and cumulative operating profit, as well as qualitative elements like corporate governance. This methodology results in a diversified portfolio across various sectors, representing a broad and modern snapshot of Japan's corporate landscape, moving beyond traditional market-cap-weighted approaches to include firms demonstrating strong profitability and shareholder focus. It provides a core holding for those seeking to participate in the growth potential of one of the world's largest developed economies.

A key feature of this particular product is its currency-hedging mechanism. It is specifically designed for investors who want to invest in Japanese equities but wish to mitigate the impact of currency fluctuations between the Japanese Yen and the US Dollar. By employing a daily hedging strategy, the fund aims to neutralize the effect of exchange rate movements on the investment's returns. This makes it a suitable option for dollar-based investors who believe in the fundamental strength of the Japanese market but are concerned about potential adverse movements in the JPY/USD exchange rate eroding their gains or exacerbating losses. This strategic overlay allows for a more direct play on the performance of the underlying Japanese stocks themselves.