Amundi broadens sector ETF range: London listing for global financials fund with ESG screen

On 24 March 2026, Amundi began trading on the London Stock Exchange the new Amundi S&P World Financials Screened UCITS ETF Acc (ISIN: IE000KYX7IP4).

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Article created by the editorial staff of ETFWorld.co.uk

Benoit Sorel Global Head of ETF, Indexing & Smart Beta Amundi ETF

The vehicle, which charges a total expense ratio of 0.18%, expands the European asset manager’s thematic range by offering exposure to the financial sector in developed markets while incorporating environmental, social and governance (ESG) criteria.

Investment strategy and benchmark

The fund is passively managed and aims to physically replicate the S&P World Financials Weighted & Screened Index. It uses a direct replication approach: the portfolio holds the securities that make up the benchmark in proportions very close to those of the reference index.

The underlying index is a subset of the broader S&P World Financials Index, which itself measures the performance of large and mid-cap financial companies in developed markets (excluding South Korea) representing approximately 85% of the available float-adjusted market capitalisation. Sector classification follows the Global Industry Classification Standard (GICS) and includes banks, insurance companies, investment services firms, asset managers, as well as credit card companies such as Visa and Mastercard, and mortgage REITs.

ESG filters and methodology

The ETF is classified as a financial product under Article 8 of Regulation (EU) 2019/2088 (SFDR). This means it promotes environmental and social characteristics, though it does not have sustainable investment as its primary objective.

The underlying index applies a multi‑layer screening methodology:

Exclusion filters: companies involved in controversial business activities (such as controversial weapons) or subject to severe ESG‑related controversies are removed.

Optimisation: the index is reweighted to improve the overall ESG profile, reduce greenhouse gas (GHG) emission intensity, and achieve an S&P Global ESG Score at least in line with that of the parent index.

The result is a selection and weighting that aims to deliver a higher sustainability profile compared to the starting benchmark.

Operational features and portfolio composition

The fund physically replicates the index constituents by investing directly in the equities that compose it. Derivatives may be used only to manage cash flows from subscriptions and redemptions or for efficient portfolio management. Securities lending is permitted to generate ancillary income to offset operating costs.

Data updated to March 2026 show assets under management at approximately €686 million. Geographic allocation reflects the predominance of the US market (51.5%), followed by Japan (8.0%), the United Kingdom (6.6%) and Canada (6.1%). Top holdings include JPMorgan Chase (6.88%), Visa (4.59%), Mastercard (3.67%) and Bank of America (3.12%).

Costs and listing

Total expense ratio (TER) is set at 0.18%. The trading currency is euro and dividends are reinvested in the fund (accumulation share class). The ETF was previously listed on other European venues, including Xetra and Borsa Italiana, and added its London listing on 24 March 2026.

Originally launched in September 2022, the product represents one of Amundi’s offerings for investors seeking sector exposure to global financials with a quantitatively driven ESG approach.

Source: ETFWorld.co.uk