Amundi PEA MSCI USA ESG Leaders UCITS ETF - USD

Issuer: Amundi ETF

Asset Class: Equity

TER: 35bps

Trading Currency: GBX

Pays Income: False

Listing Date: 18 Apr 2018

Ticker: CU2G

ISIN: LU1681042948

This investment vehicle offers targeted exposure to the U.S. equity market by focusing on large and mid-capitalization companies with exemplary Environmental, Social, and Governance (ESG) profiles. The strategy is designed for investors who want to integrate sustainability criteria into their core U.S. holdings. It aims to replicate the performance of an index that selects companies demonstrating both high ESG ratings and a positive trend in those ratings. By using a "best-in-class" approach, the portfolio is constructed from the parent universe of U.S. stocks, selecting sectoral leaders in sustainability. This ensures a diversified exposure across the U.S. economy while tilting the portfolio towards companies positioned to manage ESG risks and capitalize on related opportunities.

The underlying index employs a rigorous screening process. Initially, it excludes companies involved in controversial business activities, such as controversial weapons, tobacco, thermal coal, and oil sands extraction. Following these exclusions, the methodology selects companies from the remaining universe that have the highest MSCI ESG Ratings. The index targets the top 50% of companies in each GICS sector based on their ESG credentials, thereby rewarding sustainability leaders across various industries. This dual focus on both the absolute ESG score and the momentum of ESG improvements aims to build a portfolio of resilient companies that are actively enhancing their corporate responsibility practices, which may contribute to long-term value creation for shareholders.

As an accumulating share class, all dividends and income generated by the underlying holdings are automatically reinvested, fostering the potential for enhanced compound growth over the long term. This structure is particularly beneficial for investors with a long time horizon who are seeking capital appreciation rather than regular income distributions. The fund provides a straightforward and cost-effective solution for accessing a portfolio of U.S. companies leading the way in sustainable practices. It is well-suited for investors looking to build a socially responsible portfolio core, offering a blend of potential financial returns with positive environmental and social impact.