Amundi has launched a pair of US equity ETFs capturing and excluding mega cap stocks.
The Amundi MSCI USA Mega Cap UCITS ETF (MEGA) and the Amundi MSCI USA Ex Mega Cap UCITS ETF (XMGA) both debut with a total expense ratio (TER) of 0.15%.
MEGA will track the MSCI USA Mega Cap Select index, a cap-weighted index comprised of companies with market capitalisations exceeding $200bn. As of 31 October, the index had 37 constituents including all of the so-called ‘magnificent seven’.
XMGA, on the other hand, provides exposure to the MSCI USA index and excludes any stocks which feature in the MSCI USA Mega Cap Select index, allowing investors to dial up and down their US mega cap exposure.
Benoit Sorel (pictured), global head of ETF, indexing and smart beta at Amundi, commented: “These new ETFs enable investors to fine-tune their US equity exposure by adjusting their allocation to the mega-caps that dominate the US market.”
“With these complementary solutions, Amundi continues to meet client demand by providing even greater precision in their allocations.”
The launches coincide with mounting concerns about the level of concentration in the US equity market and fund selectors are divided on the merits of mega cap ETFs following the recent launch of BlackRock’s S&P 500 top 20 ETF.
