Amundi Prime Emerging Markets UCITS ETF DR (C)
| Issuer: Amundi ETF |
| Asset Class: Equity |
| TER: 10bps |
| Trading Currency: USD |
| Pays Income: False |
| Listing Date: 23 Nov 2021 |
| Ticker: PRAM |
| ISIN: LU2300295123 |
This fund offers a cost-effective and straightforward way to gain core exposure to emerging market equities. It is designed to track the performance of an index composed of large and mid-capitalisation companies from over 20 developing economies. By investing in this product, investors can achieve broad diversification away from developed markets, tapping into regions with potentially higher long-term growth prospects. The fund employs a physical replication strategy, meaning it holds the actual stocks of the index constituents, which provides a high degree of transparency and directly aligns the fund's performance with that of the underlying market, minus fees and expenses.
The portfolio is geographically diversified across key emerging nations such as China, Taiwan, India, Brazil, and South Korea. This broad country exposure is complemented by a varied sector allocation, including significant weightings in technology, financials, consumer discretionary, and materials, which reflects the diverse economic engines of these growing nations. A key feature of the underlying index is its integration of Environmental, Social, and Governance (ESG) screening. This process excludes companies involved in controversial weapons and those that violate global norms, making it a suitable option for investors who wish to align their portfolios with sustainability principles.
This instrument is well-suited for long-term investors looking to add a growth-oriented component to a globally diversified portfolio. Its extremely competitive expense ratio makes it an attractive vehicle for building a strategic, long-term allocation to emerging markets. It is designed for those who believe in the continued economic development and capital market expansion of these countries and are willing to accept the higher volatility typically associated with them. The annual dividend distribution provides a modest income stream.
