Amundi MSCI Smart Cities ESG Screened UCITS ETF Acc

Issuer: Amundi ETF

Asset Class: Equity

TER: 35bps

Trading Currency: USD

Pays Income: False

Listing Date: 25 Apr 2024

Ticker: IQCT

ISIN: LU2037748345

This fund offers exposure to the transformative and long-term trend of global urbanization through the lens of 'smart cities'. As more of the world's population concentrates in urban areas, there is a growing necessity for innovative solutions to manage resources, reduce environmental impact, and improve the quality of life for citizens. This investment theme targets companies that are at the forefront of this evolution, developing the technologies and infrastructure that will define the cities of tomorrow. It taps into a structural growth narrative driven by demographic shifts, technological advancement, and increasing sustainability requirements worldwide.

The portfolio provides a diversified approach by investing in global companies across various sectors crucial to the smart city ecosystem. This includes businesses involved in creating smart homes and buildings with automated energy management, developing intelligent transport systems to ease congestion, modernizing public utilities for efficient water and power distribution, and advancing public safety through new technologies. It also encompasses the foundational digital infrastructure, such as 5G networks and data centers, that enables these interconnected systems to function. The strategy is designed to capture the growth potential of this multi-faceted theme, which touches upon industrial, technological, and utility sectors.

By investing in this product, one gains access to a forward-looking and resilient investment theme. The demand for smarter urban solutions is not a cyclical trend but a fundamental shift in how societies are organized. The companies within this portfolio are positioned to benefit from significant public and private sector investment aimed at upgrading urban infrastructure globally. Furthermore, the fund's underlying index incorporates an ESG filter, aligning the investment with principles of sustainable development by selecting companies that demonstrate strong environmental, social, and governance practices.