Amundi has launched the first ETF in Europe exposed to USD denominated floating rate notes. This fund aims to protect portfolios from interest rate moves.
The firm says that the ETF has a low degree of price sensitivity to interest rates and a yield moving in line with interest rates.
The fund has been listed on Euronext Paris and has already been recongnised by the Financial Conduct Authority. It will be soon cross-listed on the main European markets, including the London Stock Exchange.
Valerie Baudson, global head of ETF, Indexing and Smart Beta at Amundi, said: “Our innovative Floating Rate Notes range is of particular interest in today’s market for investors seeking a source of yield in a low rate environment and a hedge in the event of a rise in EUR and US short term rates. Our building blocks are innovation, cost-efficiency and quality of replication.”