New Listing

Amundi switches to ESG index on flagship Italian ETF

Italian equity ETF will switch from FTSE to Euronext index

Theo Andrew

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Amundi is switching the index on its large-cap Italian equity ETF to one that tracks ESG metrics, ETF Stream can reveal.

The Amundi FTSE MIB UCITS ETF will go from tracking the FTSE MIB index to the Euronext MIB ESG index, the first ETF to do so.

As a result, the €44m ETF will be renamed the Amundi Italy MIB ESG UCITS ETF (FMI) with a total expense ratio (TER) of 0.18%.

The Euronext MIB ESG index, which was launched last October, tracks the top 40 Italian listed companies – out of a list of the 60 most liquid firms – based on their ESG criteria and economic performance.

It will apply norms-based exclusion filters in accordance with the United Nations Global Compact principles and aims to deliver improved weighted carbon intensity compared to the investible universe.

The index will be run in partnership with Vigeo Eiris, an affiliate of Moody’s, which will perform the ESG assessments and engage with issuers on their ESG performance.

Arnaud Llinas, head of ETF indexing and smart beta at Amundi, said: “Responsible investing is at the heart of Amundi’s ETF product development strategy. This is why we are delighted to partner again with Euronext and accompany investors in the reorientation of capital towards sustainable portfolios.

“We believe that issuing ESG equivalent of national blue chip indices is also instrumental to help democratise ESG investing.”

Fabrizio Testa, CEO of Borsa Italiana, added: “This is further evidence of a strong market appetite for solutions that enable the integration of ESG considerations into core investment portfolios.

“We look forward to continuing to collaborate with our clients in developing products supporting this ESG transition, in line with our ‘Fit for 1.5°C’ commitment'."

FIM is Euronext’s second national ESG index following the launch of the CAC40 ESG index established in March, currently tracked by the Amundi CAC 40 ESG UCUTS ETF (C40) and the BNP Paribas Easy CAC 40 ESG UCITS ETF (E40).

It follows the launch of the Amundi S&P 500 Equal Weight ESG Leaders UCITS ETF (WELE) earlier this month as the French asset manager looks to double the proportion of sustainable ETFs available to investors, reaching 40% of the total ETF range by 2025.

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