With the lowest costs in the market*, you will love Europe with Amundi ETF

01/09/2017

Corporate

It’s been a very good start to the year for the European economy. Its recovery is strengthening, with employment and consumption figures improving and sentiment at its highest level since 2011. Meanwhile, monetary conditions remain accommodative.

While political risk remains in the form of upcoming German elections, uncertainty in Italy and the ongoing Brexit negotiations, it has subsided with the election of centrist governments in the Netherlands and, most recently, France.

Meanwhile, European equity valuations look attractive, especially compared with those of US stocks. While the P/E ratio1 of the US stock market has risen by 22% over the past three years, that of the MSCI EMU index has fallen by over 20%2. In our view there is a strong chance that this gap could shrink over the coming months due to rising corporate profits which should lead to a reduction of this differential.

So while investors continue to profit from the fading risk premium deriving from recent political uncertainties, they could also benefit from the additional source of profit represented by the potential risk premium relating to valuations.

Strong inflows into European equity ETFs.

After a mass exodus from European equity ETFs for much of last year – there were EUR 11.5 billion of outflows in the first 11 months of 20163 – investors’ shift towards the asset class in recent months is an indicator of the general rising demand.

ETFs are an efficient tool with which to capitalise on the return potential currently provided by the European stock markets. Not only are they a very low-cost option that can be traded in minutes, the sheer range of ETFs available means there is a huge variety of ways to exploit European equities’ return potential. In short, they enable investors to achieve the allocation that is right for their needs.

 

As the European leader in asset management4, Amundi offers the lowest cost MSCI Europe ETFs in the market with ongoing charges of 0.15%*, along with a range of solutions to get exposed to European or Euro zone equities:

AMUNDI ETF MSCI EUROPE UCITS ETF

AMUNDI ETF MSCI EUROPE UCITS ETF seeks to replicate as closely as possible the performance of the MSCI Europe Index, whether the trend is rising or falling. This ETF enables investors to benefit from an exposure to around 500 leading stocks in 15 European countries, in a single transaction, with ongoing charges of only 0.15%.

AMUNDI INDEX MSCI EUROPE UCITS ETF DR

AMUNDI INDEX MSCI EUROPE UCITS ETF DR seeks to replicate as closely as possible the performance of the MSCI Europe Index in physical replication, whether the trend is rising or falling. This ETF enables investors to benefit from an exposure to around 500 leading stocks in 15 European countries, in a single transaction.

AMUNDI ETF MSCI EMU UCITS ETF DR

AMUNDI ETF MSCI EMU UCITS ETF DR seeks to replicate as closely as possible the performance of the MSCI EMU Index, whether the trend is rising or falling. This ETF enables investors to benefit from an exposure to around 300 stocks in 10 countries of the European Economic and Monetary Union, in a single transaction.

AMUNDI ETF EURO STOXX 50 UCITS ETF DR

AMUNDI ETF EURO STOXX 50 UCITS ETF DR seeks to replicate as closely as possible the performance of the EURO STOXX 50® Index, whether the trend is rising or falling. This ETF enables investors to benefit from an exposure to the 50 leading stocks covering 12 countries in the Eurozone, in a single transaction. This ETF is available in several share classes (accumulation/distribution of dividends, currency hedging) and currencies

* As of 31.07.2017: ongoing charges at 0.15%, the cheapest worldwide based on a comparison with ETFs replicating MSCI Europe, without taking into account the fees applied by financial intermediaries, as these fees are borne directly by the investor - Source Amundi ETF/Bloomberg.

1. P/E: Price-to-Earnings ratio

2. Source: Bloomberg, Amundi ETF, Indexing & Smart Beta as of July 2017.

3. Source: Bloomberg, Amundi ETF, Indexing & Smart Beta, end 2016. Net flows calculations based on European primary market data. Amundi ETF Internal Database of 2050 European ETFs.

4. Amundi scope – No.1 in total assets under management of investment companies with their main headquarters in Europe - Source: IPE Top 400 asset managers published in June 2016, based on assets under management at 31 December 2016.