Amundi JPX-Nikkei 400 UCITS ETF - DAILY HEDGED GBP (C)
| Issuer: Amundi ETF |
| Asset Class: Equity |
| TER: 18bps |
| Trading Currency: GBX |
| Pays Income: False |
| Listing Date: 22 Mar 2018 |
| Ticker: JPHG |
| ISIN: LU1681039308 |
This financial instrument offers targeted exposure to the Japanese equity market by seeking to replicate the performance of a quality-focused index. The underlying benchmark is composed of 400 common stocks selected from the Tokyo Stock Exchange, chosen based on criteria that appeal to investors, such as high return on equity, cumulative operating profit, and strong corporate governance standards. This selection methodology differentiates it from traditional market-cap-weighted indices by emphasizing companies perceived as being efficiently managed and profitable. It provides a diversified portfolio of leading Japanese companies through a single investment, representing a modern approach to investing in one of Asia's largest economies.
A key feature of this product is its currency-hedging mechanism. It is specifically designed for investors who want to invest in Japanese companies but wish to minimize the impact of currency fluctuations between the Japanese Yen and the British Pound. By implementing a daily hedge, the fund aims to neutralize the currency risk, meaning the investor's return is more closely aligned with the performance of the underlying Japanese stocks themselves, rather than being influenced by foreign exchange volatility. This makes it a suitable option for those who want pure-play exposure to the Japanese equity market without taking a view on the direction of the Yen.
The fund operates as an accumulating share class, meaning any dividends paid by the constituent companies are automatically reinvested back into the portfolio. This process facilitates the power of compounding over the long term, potentially enhancing overall returns. As a passively managed vehicle, it provides this specialized access to the Japanese market in a cost-effective manner, making it an efficient tool for strategic or tactical asset allocation within a global portfolio.
