Amundi EUR High Yield Corporate Bond ESG UCITS ETF Dist

Issuer: Amundi ETF

Asset Class: Fixed Income

TER: 25bps

Trading Currency: EUR

Pays Income: False

Listing Date: 26 Oct 2018

Ticker: YIEL

ISIN: LU1812090543

This investment vehicle offers targeted exposure to the European high-yield corporate bond market, specifically focusing on debt issued by companies with strong environmental, social, and governance (ESG) credentials. It is designed for investors seeking to generate a higher level of income than what is typically available from government or investment-grade corporate bonds. By investing in sub-investment-grade, or "high-yield," securities, the portfolio carries the potential for higher returns, primarily driven by larger coupon payments. However, this higher yield potential is accompanied by increased credit risk and sensitivity to economic downturns, as the issuing companies have a higher probability of default compared to their investment-grade counterparts. The fund aims to replicate the performance of a benchmark that represents the liquid, euro-denominated high-yield corporate bond universe.

A key feature of this product is its integration of sustainability criteria. The underlying index applies a rigorous ESG screening process, which excludes issuers involved in controversial activities such as weapons, tobacco, and thermal coal, while favoring those that demonstrate strong performance on ESG metrics. This makes the fund suitable for investors who wish to align their fixed-income allocation with sustainable and responsible principles without sacrificing exposure to the high-yield segment. Through its diversified portfolio of bonds from various sectors and European countries, the fund helps to mitigate issuer-specific risk. As a distributing share class, it aims to provide investors with regular income payments, making it a potentially attractive component for income-focused portfolios that can tolerate the inherent risks of the high-yield market.