Amundi ETF has launched an ETF based on European share buybacks after having launched an US buyback ETF earlier this year.
The firm said it is the first ETF in Europe tracking the MSCI Europe Equal Weighted Buyback Yield index.
It aims to deliver yield from the European equity market via a return-oriented smart beta approach, by providing exposure to companies performing share buybacks, a way of distributing value to shareholders.
Share buyback programs allow cash-rich companies to repurchase their own stocks and can provide higher returns in a low rate environment.
The MSCI Europe Equal Weighted Buyback Yield Index is composed of MSCI Europe securities having performed buybacks in the previous 12 months. It applies an equal weight methodology, thus increasing diversification and providing a purer exposure to the share buyback theme with reduced bias.
The ETF has a TER of 0.30% and will be listed in Paris then on the major European exchanges.
Valerie Baudson, CEO at Amundi ETF, Indexing and Smart Beta, said: “This innovative ETF adds to our smart beta range and reinforces the positioning of Amundi as a leading innovative player in the European ETF market.”