Amundi has claimed a first in European fund management with the launch of a dedicated European equity multi-factor market neutral ETF.
The French asset manager said the fund, which is Ucits compliant, is the first of its kind in Europe and marks an important and innovative step in the development of passive products.
The ETF has initially been made available on Euronext Paris and is set to be made more widely available in the coming weeks.
It is designed to capture the long-term potential of factor risk premia without being exposed to the market beta of European equities.
The underlying index is the iSTOXX Europe Multi-Factor Market Neutral strategy index, which has a long exposure on the index made up of six factors – carry, low risk, momentum, size, value and quality.
The short positions are based on the STOXX Europe 600 Futures Roll EUR Excess Return, which is designed to achieve a market neutral stance.
Commenting on the launch, Fannie Wurtz, managing director at Amundi ETF, Indexing & Smart Beta, said: 'In today’s low yield environment, investors are on the lookout for new ways to generate return and diversify their portfolios.
‘We’re proud to be the first in Europe to offer a cost-efficient all-in-one European Equity Multi Factor Market Neutral Ucits ETF.’