Industry Updates

Amundi hikes fees on leveraged US equity ETF following share split

TER will rise from 0.35% to 0.50%

Theo Andrew


Amundi is raising the fees on its leveraged US equity product after undertaking a share split in a bid to make the product “accessible to all European customers”.

The French asset manager said the Amundi Leveraged MSCI USA Daily UCITS ETF (CL2) will see its total expense ratio (TER) rise from 0.35% to 0.50% on 10 October, the same day as the division of shares.

Following the share split, investors' shares will be multiplied by 300 while the value will remain the same.

The group said it has raised the fees of the ETF to cover the costs associated with the increased administration and stock exchange fees following the share split.

“As part of the ongoing review of the competitiveness of its product range, Amundi has taken into account the changing demand of its customers and decided to split the fund’s shares. Furthermore, the fees charged to the fund will be increased,” Amundi said in a notice to shareholders.

CL2, which tracks the MSCI USA Leverage (2x) index, currently has €373m assets under management (AUM) and has returned 32.2% year to date – versus 17% for the S&P 500 – as the artificial intelligence frenzy continues to fuel the rise in US equities.

In May, DWS cancelled plans to split the shares on four of its ETFs which it had originally planned to attract more retail investors.

The German asset manager said the rise of fractional trading among robo-advisers and wealth platforms led it to call off the move.

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