Amundi lists two “Target Income” ETFs on the London Stock Exchange

On 16 June 2026, Amundi listed two ETFs from its “Target Income” range on the London Stock Exchange (LSE): the Amundi Euro STOXX 50 Target Income UCITS ETF Dist (ISIN LU3299677271) and the Amundi Nasdaq-100 Target Income UCITS ETF Dist (ISIN LU3299677438).

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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

On 16 June 2026, Amundi listed two ETFs from its “Target Income” range on the London Stock Exchange (LSE): the Amundi Euro STOXX 50 Target Income UCITS ETF Dist (ISIN LU3299677271) and the Amundi Nasdaq-100 Target Income UCITS ETF Dist (ISIN LU3299677438). Both products employ a covered call strategy aimed at delivering an annual income of 8% and have a total expense ratio (TER) of 0.40%.

The two sub-funds were already traded on a number of European stock exchanges, including Euronext Paris and Deutsche Börse’s Xetra; the London listing adds a trading venue aimed at both retail and professional investors in the UK market. This move forms part of Amundi’s strategy – as Europe’s largest asset manager – to expand its range of products listed on the LSE during 2025 and 2026.

Key figures for the two ETFs

Both sub-funds are part of the Luxembourg-based SICAV Amundi Index Solutions, are managed by Amundi Luxembourg S.A. and employ a passive management approach, with the aim of replicating the benchmark index whilst minimising tracking error. The custodian bank is CACEIS Bank, Luxembourg Branch. The Nasdaq-100 ETF is traded under the ticker NSDT on Euronext Paris and Xetra.

How the “Target Income” strategy works

The two ETFs do not simply track a basket of shares: they track indices that combine a long position in the underlying market with the systematic sale of call options on that same market. This structure is known as a ‘buy-write’ or ‘covered call’ strategy. Investors adopting this strategy hold equity exposure whilst simultaneously collecting the premiums from the sale of call options. These premiums represent the main source of the income that the indices aim to generate.

The feature that distinguishes the Amundi range from a traditional covered call strategy is the dynamic calibration of the hedge. In the “Target Income 8%” indices, the notional amount covered by the options sold is adjusted according to the value of the options themselves, with the aim of achieving a predefined income level, set at 8% on an annual basis. In practice, the number of options sold each month – known as the coverage ratio – may vary: when premiums are high, it is sufficient to sell options on a portion of the notional amount to achieve the income target, leaving the remainder uncovered. On that uncovered portion, the investor retains full exposure to market rises; on the covered portion, however, the gain is limited to the option’s strike price.

This results in an asymmetric return profile. During sideways or moderately bullish market phases, and in periods of high volatility that drive up premium values, the strategy can generate higher returns for the investor than holding equities alone. In a strongly rising market, by contrast, the cap on gains from the hedged portion penalises performance compared with a direct equity investment. In the event of a fall in the market, the premiums received partially offset the losses, but do not offer capital protection.

The underlying indices

The Amundi Euro STOXX 50 Target Income UCITS ETF Dist tracks the EURO STOXX 50 Covered Call Target Income 8% index (code SXCCTI8), calculated by STOXX in euros as a Net Return index. The strategy involves buying the EURO STOXX 50 and simultaneously selling a call option on the same index, traded on Eurex. At the monthly expiry, the existing option is closed out and a new one is sold. The hedged notional amount is dynamically adjusted to target an 8% annual return.

The Amundi Nasdaq-100 Target Income UCITS ETF Dist tracks the Nasdaq-100 8% Income Target Index (Bloomberg NDXTII8), denominated in US dollars and constructed as a net total return index. The strategy combines a long position in the Nasdaq-100 Notional Net Total Return Index (XNDXNNR) with a short position in a series of monthly at-the-money call options on the Nasdaq-100 (NDX). Here too, the hedging is adjusted on a monthly basis to pursue the target annual income of 8 per cent, generated by option premiums and the positive spread between the long and short positions.

In both cases, the sub-funds gain exposure to the index indirectly, via a total return swap that exchanges the performance of the assets held for that of the index. Synthetic replication is a choice consistent with the nature of these strategies, in which the options component does not lend itself to physical replication.

Income, but subject to conditions

The figure of 8% is a target, not a guarantee. It refers to a full year and depends on market conditions, in particular the level of volatility that determines the value of option premiums. Investors interested in these instruments should consider a number of factors.

The first concerns the trade-off between income and growth. By selling call options, the strategy forgoes part of the underlying asset’s potential for capital appreciation in exchange for a higher income stream. Those seeking maximum exposure to the growth of the Nasdaq-100 or the EURO STOXX 50 will find a traditional ETF that tracks the equity index alone more suitable, and generally less expensive too.

The second aspect relates to the composition of distributions. In high-yield covered call strategies, a portion of the distributions may result in an erosion of capital value when markets fall. A nominally generous distribution yield does not therefore equate to an equally high total return.

The third factor is overall risk. As these are products that maintain equity exposure, they remain subject to the volatility of their respective markets. The Key Information Document (KID) for the Nasdaq-100 ETF classifies the product as level 5 on a risk scale of 1 to 7, corresponding to a medium-to-high risk category, and recommends a holding period of five years. Also to be considered are the counterparty risk associated with the use of swaps and, for the Nasdaq-100 fund denominated in US dollars, the currency risk for investors holding euros.

The context: the rush towards options-income ETFs

Amundi’s entry into the European covered call segment comes at a time of strong growth in this category. In the United States, covered call ETFs have raised tens of billions of dollars, and in Europe the range of products on offer is expanding rapidly.

Against this backdrop, Amundi’s “Target Income” range offers an approach that differs from full hedging. Rather than selling options on the entire notional value, the indices adjust the hedging to target a pre-set income level, in an attempt to retain a larger share of the upside potential when option premiums are high. This is the main difference compared to covered call strategies that consistently write options on 100 per cent of the portfolio.

For Amundi, the London listing also marks a step forward in its strategy to establish a presence in the UK market. The group had admitted eleven ETFs to trading on the LSE at the start of 2025 and, in the months that followed, added the London listing to other products in the range. The admission of the two Target Income ETFs further expands the range of products available to UK investors.

In summary

With the listing on 16 June 2026, investors trading on the London Stock Exchange can access two ETFs that translate exposure to the EURO STOXX 50 and the Nasdaq-100 into an income-oriented strategy, with a target of 8% per annum and a fee of 0.40%.

Source: ETFWorld.co.uk