Amundi S&P Global Luxury UCITS ETF - USD (C)

Issuer: Amundi ETF

Asset Class: Equity

TER: 25bps

Trading Currency: GBX

Pays Income: False

Listing Date: 31 Jan 2018

Ticker: LUXG

ISIN: LU1681048713

This product offers targeted exposure to the global luxury goods and services market by tracking an index of the largest publicly traded companies in the sector. The portfolio includes firms engaged in the production and distribution of high-end goods or the provision of luxury services, covering areas such as premium fashion, automobiles, timepieces, jewelry, and hospitality. The luxury industry is often defined by significant brand power, high profit margins, and a worldwide consumer base, which can offer a degree of resilience through various economic conditions. The strategy is designed to capture the performance of these elite companies, which stand to benefit from rising global disposable incomes and the timeless allure of prestigious brands.

Investing in this theme provides a method for portfolio diversification and access to a distinct segment of the consumer discretionary sector. A primary growth driver for this theme is the expanding affluent population worldwide, which fuels demand for premium products and exclusive experiences. This product is well-suited for investors with a long-term growth perspective who are optimistic about global consumer spending patterns and the enduring strength of iconic luxury brands. It offers a convenient and efficient vehicle for accessing a diversified basket of these often high-priced equities. The accumulating share class structure ensures that any dividends from the underlying holdings are automatically reinvested, potentially enhancing long-term compounding effects.