New Listing

AXA IM expands ETF range with triple launch

Two active US bond ETFs and one passive US equity ETF

Theo Andrew

olivier2 article-image

AXA Investment Managers has expanded its range with the launch of two actively-managed US bond ETFs and a passive US equity ETF, ETF Stream can reveal.

The two bond ETFs, the AXA IM USD Credit PAB UCITS ETF (AIPU) and the AXA IM US High Yield Opportunities UCITS ETF (AHYU), have total expense ratios (TERs) of 0.18% and 0.35%, respectively.

AIPU is listed on Deutsche Boerse with AHYU set to follow “soon”, the French asset manager said.

Elsewhere, the AXA IM MSCI USA Equity PAB UCITS ETF (AIUU) is also set to list on the Deutsche Boerse with a TER of 0.20%.

AIUU will track the MSCI USA Climate Paris Aligned index which offers exposure to large and mid-cap companies listed within US equity markets while following a trajectory consistent with the objectives of the Paris-Aligned Benchmarks (PABs).

AXA IM’s US dollar-denominated credit ETF will also aim to reduce its carbon emissions in line with the PAB, as it looks to outperform the ICE US Corporate Paris-Aligned Absolute Emissions index net of fees “over the long-term”.

It said it will use credit risk monitoring developed within AXA IM’s US fixed income research team in a bid to generate alpha.

It follows the launch of the euro equivalent, the AXA IM Euro Credit PAB UCITS ETF (AIPE), in July, the group’s first actively-managed fixed income ETF.

AHYU will seek to outperform the ICE BofA US High Yield index – with a low deviation from the benchmark – by targeting “high income and long-term growth” and leveraging its US high-yield bond research team.

All three ETFs are classified as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR).

Olivier Paquier (pictured), global head of ETF sales at AXA IM, commented: “US exposures represent a core building block for UCTIS ETF investors, hence our decision to strengthen our ETF range in this region.”

The firm said the new launches will help the group become a leader of the European ETF market by 2026.

Nicolas-Louis Guille-Biel, global head of ETF and product strategy at AXA IM, added: “The expansion of our ETF range, anchored around innovation and/or responsible investing, is essential if we want to become a leader in the UCITS ETF market by 2026.

“In this respect, we have accelerated our development in 2023, with a range that has more than doubled since January, and also with the strengthening of our specific expertise in distribution and product management.”

The group now houses seven ETFs since it came to market in September 2022, amassing roughly amassing roughly €1.5bn assets under management (AUM).