Amundi Index US Corp SRI UCITS ETF DR - USD (C)
| Issuer: Amundi ETF |
| Asset Class: Fixed Income |
| TER: 14bps |
| Trading Currency: GBX |
| Pays Income: False |
| Listing Date: 04 Feb 2020 |
| Ticker: UCRP |
| ISIN: LU1806495575 |
This investment vehicle offers exposure to the US dollar-denominated, investment-grade corporate bond market, with a specific focus on companies demonstrating strong Environmental, Social, and Governance (ESG) performance. The strategy aims to replicate the performance of a benchmark index that includes fixed-rate corporate bonds from issuers in the United States. By investing in this product, individuals gain access to a diversified portfolio of corporate debt while adhering to principles of socially responsible investing. The fund provides a core fixed-income allocation that is aligned with sustainable values.
The underlying index applies a rigorous screening process based on ESG criteria. It selects companies with high ESG ratings relative to their sector peers and excludes those involved in controversial business activities such as fossil fuels, controversial weapons, tobacco, and others that do not meet certain ethical standards. This filtering results in a portfolio that not only seeks stable returns from the corporate bond market but also aims to support companies with positive social and environmental impacts. The direct, physical replication method ensures that the fund holds the actual bonds in the index, providing transparency and minimizing counterparty risk.
This fund is suitable for investors seeking to integrate sustainability into their fixed-income holdings. It can serve as a foundational element in a diversified portfolio, offering the potential for regular income and capital preservation typical of investment-grade corporate bonds, but with an added layer of ESG consideration. As it is an accumulating share class, any income generated from the bonds is automatically reinvested back into the fund, which can enhance long-term compound growth. This structure is particularly beneficial for investors with a long-term horizon who prefer a hands-off approach to reinvesting distributions.
