Amundi has expanded its climate ETF range with the launch of a global equities ETF that adheres to Paris-aligned benchmark (PAB) and socially responsible investment (SRI) principles.
The Amundi MSCI ACWI SRI PAB UCITS ETF (WELB) has listed on the Deutsche Boerse with a total expense ratio (TER) of 0.20%.
WELB tracks the MSCI ACWI SRI PAB index of 502 large and mid-cap stocks from 23 developed markets and 24 emerging markets.
It takes the 2,898 constituents of its parent MSCI ACWI index and then chooses securities with the highest ESG scores in each sector.
To align with Paris Agreement goals such as net zero by 2050 and a temperature rise of no more than 1.5°C, WELB’s index must be on track to reduce carbon emissions by 7% a year and represent an immediate carbon intensity reduction of 50% versus the ACWI investment universe.
The index aims to replicate the sector weights of the MSCI Global Investable Market indices. Like its parent index, it also offers more than half of its allocation to US-listed equities with Microsoft, Tesla and Taiwan Semiconductor retaining top weightings.
WELB is labelled Article 9 of the Sustainable Finance Disclosure Regulation (SFDR).
Mathieu Guignard (pictured), global head of product development and capital markets at Amundi, said: “Investors are looking for more tools to take climate action in a transparent, simple and cost-effective way.
“We are delighted and committed to further expanding our climate ETFs range to help investors achieve their net zero objectives.”
The firm said WELB’s arrival “completes” its range of 29 ETFs aligned with the EU’s PAB and Climate Transition Benchmark (CTB) principles, which collectively house almost €19bn assets under management (AUM).
Outside of PABs and CTBs, Amundi launched an equal weight S&P 500 ESG ETF in July and global aggregate bond and far east Asian equity ESG ETFs in April.