(KX1G) Amundi Index Solutions - Ratings and Ratios

The Amundi Govt Bond Lowest Rated Euro Investment Grade UCITS ETF-C (XETRA:KX1G) is an exchange-traded fund that tracks the Morningstar EZN Trsy Bd GR EUR Index, providing exposure to euro-denominated government bonds with the lowest credit ratings within the investment-grade category.

As a euro government bond ETF, KX1G is designed to capture the performance of a specific segment of the European fixed-income market. The funds underlying index is likely to comprise bonds with relatively lower credit quality, potentially resulting in higher yields to compensate for the increased credit risk.

From a trading perspective, KX1Gs liquidity and volatility profile are essential considerations. With an average true range (ATR) of 0.71, representing a 0.31% daily price movement, the ETF exhibits relatively moderate volatility. The current price is near the 20-day and 50-day simple moving averages (SMA20 and SMA50), indicating a stable short-term trend. However, the 200-day simple moving average (SMA200) is slightly lower, suggesting a potential long-term uptrend.

Key performance indicators (KPIs) to monitor for KX1G include its yield, duration, and credit quality metrics. The funds yield is likely to be higher than that of higher-rated government bond ETFs, given its focus on lower-rated investment-grade bonds. The duration of the fund, which measures its sensitivity to interest rate changes, is also crucial in assessing its potential volatility. Additionally, tracking the funds tracking error and expense ratio can help investors evaluate its efficiency and cost-effectiveness.

With assets under management (AUM) of approximately 500.46 million EUR, KX1G has achieved a reasonable scale, which can contribute to lower trading costs and improved liquidity. As with any bond ETF, investors should be aware of the potential risks, including credit risk, interest rate risk, and liquidity risk, and carefully assess their investment objectives and risk tolerance before investing.