Amundi to launch first ETF on S&P 500 Buyback

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Amundi ETF has announced plans to launch first European ETF based on S&P 500 Buyback Index.

The French asset management company schedules to list its fund on Euronext Paris on 17 February, before cross-listing it soon on the main European markets.

The S&P 500 Buyback index assesses the performances of the top 100 stocks in the S&P 500 index with the highest buyback ratio over the 12 previous months. Its components are equally weighted, which enables the index to have a total exposure to the buyback theme.

The index outperformed S&P 500 for 17 times out of the 20 last years, Amundi said.

This investment theme is following a sustainable trend in corporate payout policy in US, that has been observed since the end of the 1990’s. Share repurchases exceeded the cash dividends, becoming a standard of corporate payout during this period.

With a TER of 0.15%, Amundi seeks to offer exposure through this ETF to investors looking for an alternative to dividends in their search for yield in the US equity market.

Valerie Baudson, global head of ETF and Indexing at Amundi, commented: “The new S&P 500 Buyback ETF adds to Amundi’s US equity range while meeting growing demand from investors for smart beta investment tools.”

Adrien Paredes-Vanheule
Adrien Paredes-Vanheule is deputy editor and French-Speaking Europe Correspondent for InvestmentEurope, covering France, Belgium, Geneva and Monaco. Prior to joining InvestmentEurope, he spent almost five years writing for various publications in Monaco, primarily as a criminal and financial court reporter. Before that, he worked for newspapers and radio stations in France, in particular in Lyon.

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