BNP Paribas Asset Management (‘BNPP AM’) reinforces its global equities ETF range with the launch of BNP Paribas Easy MSCI World Equal Weight Select UCITS ETF, a sub-fund of the BNP Paribas Easy Irish ICAV.
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Miriam Breen, Head of Business development for ETFs & Index Funds at BNPP AM UK
The new ETF is listed as of today, 20th May, on Euronext Paris and Deutsche Börse Xetra and will soon be listed on Borsa Italiana and SIX Swiss Exchange.
Equal weight concept, even if already well known in the Smart Beta world, became a hot topic in 2024, to compensate the disproportional role of the “magnificent 7” in the portfolio weight.
Alternative weighting shows more fair perspective of wider market activity dynamics.
Key highlights of BNPP AM Equal Weight ETFs:
- Specific investment approach providing a solution to largest cap risk concentration
- Exposure to mainstream index constituents with ESG integration
BNP Paribas Easy MSCI World Equal Weight Select UCITS ETF is an Article 8 fund according to SFDR regulation, seeking a Sustainable Investment of at least 30% while providing exposure to the global equity market. The fund follows a best-in-universe ESG selection approach which excludes the lowest ESG scores to attain ≥ 20% exclusions based on all extra-financial criteria vs the investment universe. The Benchmark Index is MSCI World Equal Weighted Ex Business Involvement Screens Select.
Marie-Sophie Pastant, Head of Index & ETF Strategies – Portfolio Management at BNPP AM comments:
“Our new equal-weighted global equity ETF distributes capital uniformly across all constituents, reducing idiosyncratic risk and size bias, in opposition contrast to traditional market cap weighted indices. Geographically, the concentration on the US market is decreased approximately by half, if compared to a market capitalisation index, offering more diversification and less reliance on one region. This approach also introduces a natural contrarian dynamic, as periodic rebalancing reduces exposure to recent outperformers, while increasing allocation to underperformers, which can be beneficial in case of mean reversion in the markets. Additionally, the strategy incorporates ESG criteria, offering a balanced alternative for investors seeking global equity exposure with greater diversification and alignment with long-term environmental and social goals.”
Miriam Breen, Head of Business development for ETFs & Index Funds at BNPP AM UK comments:
“This new product answers to the growing investor interest in equal-weight strategies, which have historically proven to be a relevant alternative to capital-weighted indices. Looking specifically to the UK, this product directly answers the demands of UK investors. We know investors in this region tend to invest on a global basis, and this fund meets that need, with reduced concentration in the US, while allowing access to a more global footprint.
Looking at the bigger picture, equal-weight strategies gained popularity as mega-cap valuations stretched, with concentration in the largest stocks at record levels. As such, an equal-weighted approach reduces concentration risk, which reached its highest level in 20 years last year, provides more balanced exposure, both geographically and in terms of sectors, and increases the exposure to smaller companies in the index.”
BNPP AM manages ETFs and index funds assets totalling EUR 57.4 billion, including thematic and sustainable products. BNPP AM’s range of ESG equities index funds includes 32 ETFs, with 16Bn EUR under management. 90% of BNPP AM’s ETF range is classified as SFDR Article 8 or 9 and more than 70% of the range has a European sustainability label (either ISR, TSI, FNG or Austria).
Key fund characteristics (as of 20 May 2025)
BNP Paribas Easy MSCI World Equal Weight Select UCITS ETF
- Benchmark: MSCI World Equal Weighted Ex Business Involvement Screens Select Index
- OCR5: 0.20%
- SFDR8: Article 8; AMF9 category 1
- SRI : 4
- SI10 commitment: min 30%
- Replication method: physical, no security lending
- Listing place: Euronext Paris, Deutsche Börse Xetra, Borsa Italiana*, Six Swiss Exchange*
* : to be listed later on
Source : ETFWorld.co.uk
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