(JPX4) Amundi Index Solutions - Ratings and Ratios

The Amundi Index MSCI Japan SRI PAB UCITS ETF DR (C) EUR is an exchange-traded fund (ETF) that tracks the MSCI Japan SRI PAB index, focusing on large-cap Japanese equities with a blend style. As a France-originated ETF, it provides investors with exposure to the Japanese equity market while adhering to certain ESG (Environmental, Social, and Governance) criteria and a Paris-Aligned Benchmark (PAB) framework, which aims to reduce the funds carbon footprint.

This ETF is designed for investors seeking to invest in Japanese large-cap companies that meet specific sustainability and ESG standards. The MSCI Japan SRI PAB index excludes companies involved in controversial activities and emphasizes those with strong ESG profiles. The funds underlying index is constructed to be aligned with the goals of the Paris Agreement, aiming to limit global warming to well below 2°C and pursue efforts to limit it to 1.5°C above pre-industrial levels.

Key economic drivers for this ETF include the overall performance of the Japanese stock market, particularly the TOPIX or Nikkei 225 indices, as well as the economic health of Japan, influenced by factors such as GDP growth, export trends, and monetary policy decisions by the Bank of Japan. Additionally, global ESG trends and investor appetite for sustainable investments play a significant role in shaping demand for such a product.

To evaluate the performance of this ETF, one can monitor KPIs such as tracking error relative to its benchmark index, the MSCI Japan SRI PAB, as well as its expense ratio, average trading volume, and the overall AUM. The funds beta of 1.050 indicates that it is slightly more volatile than its benchmark, suggesting a moderate level of risk. The relatively stable average volume of 3473 suggests sufficient liquidity for investors.

Investors should also consider the macroeconomic and sector-specific trends in Japan, including the impact of currency fluctuations (notably the EUR/JPY exchange rate), changes in global trade policies, and the competitive landscape of Japanese industries. Given the funds focus on SRI and PAB, trends in sustainable investing and regulatory developments related to ESG reporting and climate change mitigation are also crucial.