Solactive introduces Global Infrastructure Low Earnings Volatility Index Used as the basis for the AMUNDI GLOBAL INFRASTRUCTURE UCITS ETF launched today on the Euronext Paris stock exchange…
Steffen Scheuble, CEO of Solactive AG
Solactive is announcing the release of the Solactive Global Infrastructure Low Earnings Volatility Index used as the underlying index for the AMUNDI GLOBAL INFRASTRUCTURE UCITS ETF listed for trading today on the Euronext Paris stock exchange. The index tracks the performance of a global portfolio of 100 investable and liquid companies operating in the infrastructure space that exhibit the lowest volatility in reported earnings per share among their peers. Companies included in the index belong to sectors such as telecommunications, transportation, logistics, utilities and energy.
Infrastructure companies are generally associated with steadier revenues due to the long-term nature of their projects compared to those in more cyclical sectors. Moreover, the role that infrastructure firms play in the provision of essential services makes their revenue streams relatively inelastic towards economic fluctuations. The Solactive Global Infrastructure Low Earnings Volatility Index puts further emphasis on enhancing the stability characterising such companies by focusing on reducing exposure to earnings volatility. In addition, recent months have seen governments of countries such as the US, Japan and Canada make announcements of increased infrastructure spending. Therefore, the index also allows market participants to invest in companies that are likely to be affected by new plans of government-backed investment.
Steffen Scheuble, CEO Solactive AG, commented: “There is currently a lot of demand for infrastructure-focused investing and the Solactive Global Infrastructure Low Earnings Volatility Index provides a cost-efficient way to gain access to this increasingly popular theme via the AMUNDI GLOBAL INFRASTRUCTURE UCITS ETF. The index includes an additional tilt towards companies that show a relatively stable earnings trajectory.”
Matthieu Guignard, Global Head of Product Development and Capital Markets at Amundi ETF, Indexing & Smart Beta, said: “We’re very proud to be listing today on Euronext Paris the AMUNDI GLOBAL INFRASTRUCTURE UCITS ETF, tracking the Solactive Global Infrastructure Low Earnings Volatility Index. This ETF adds a new brick to the Amundi ETF range on a theme that is gaining strong traction with investors. In line with Amundi ETF commitment to provide costcompetitive investment solutions, this product is offered with the lowest price on the European market.”
The Solactive Global Infrastructure Low Earnings Volatility Index is calculated as a net total return index and is denominated in EUR. Index constituents are weighted according to free float market capitalisation and are subject to weight caps of 4% per component and 25% per sector. The five top holdings by weight are Canadian National Railway Company, NextEra Energy, Oracle Corporation, Union Pacific Corporation and CSX Corporation. The composition is rebalanced semi-annually.