LU1481201538 | BNP Paribas Easy ESG Momentum Europe UCITS ETF
Investors can expect to receive annual dividends from the fund, making it a potentially lucrative investment option. The total expense ratio of 0.30% p.a. is reasonable, making it a cost-efficient way of gaining exposure to the European Momentum market.
The fund's strategy is to replicate the performance of the underlying index synthetically with a swap. As one of the smaller ETFs on the market, with assets under management of 0m Euro, this ETF has the potential to grow considerably and provide significant returns for investors.
The BNP Paribas Easy ESG Momentum Europe UCITS ETF has been domiciled in Luxembourg for over five years, offering investors some stability and security. It can be a suitable investment for those looking for long-term profitable investment opportunities.
For those interested in exploring similar ETFs, there are many guides available that offer comparisons between the different ETFs available in the European and Eurozone markets, including STOXX Europe 600 ETFs. The BNP Paribas Momentum Europe ESG is also another ETF option from the same provider that investors could consider.
Overall, the BNP Paribas Easy ESG Momentum Europe UCITS ETF is an excellent investment opportunity for investors looking for exposure to the European Momentum market while adhering to ESG principles. This ETF's strategy, coupled with its cost-efficiency and potential for growth, makes it a compelling option for investors looking for long-term investment opportunities with good returns.
ISIN
LU1481201538
Asset class
Equity
Trading currency
EUR
Replication
Synthetic (Unfunded swap)
Distribution policy
Distributing
Domicile
Luxembourg
Ticker
MOED.XETRA
One year low/high
Annuncio pubblicitario
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How does a distribution ETF work?
Distributing ETFs are a type of ETF that distribute the dividends and interest earned by the stocks they invest in to investors. These dividends are usually distributed on a periodic basis, such as quarterly or annually. Distributing ETFs are often used by investors looking for regular income from their investments.
How do distribution ETFs work in practice? Let's imagine that a distributing ETF invests in stocks that pay a dividend of $1 for each share held. Instead of reinvesting these dividends into the fund, the fund will distribute this money to investors in the form of dividends. This will give investors the option to use this money as income or to reinvest it in other investment opportunities.
It is important to note that distribution ETFs can also generate management fees, like most ETFs. These fees are typically charged to cover costs associated with managing the fund, such as buying and selling securities and paying fund administrators.
Distribution ETFs can be a good choice for investors who are looking for an easy and affordable way to invest in a broad basket of stocks and who want to receive regular income from their investments. However, it is important to consider the possible costs associated with distribution ETFs and whether they are suitable for your investment needs.
What are ETFs?
An ETF (Exchange Traded Fund) is an investment fund that tracks the performance of a market index or a basket of assets. ETFs are publicly traded and can be bought and sold during normal trading hours like common stock.
ETFs have many advantages over other forms of investment, such as the possibility of obtaining portfolio diversification in a simple and convenient way, the low cost of management and the transparency of their activities. Furthermore, ETFs are often used as risk hedging instruments or to track specific markets or sectors.
In summary, ETFs are an easy and convenient way to invest in a variety of assets, such as stocks, bonds, commodities and more, without having to purchase individual investment items.
What is the TER?
The TER (Total Expense Ratio) is a measure of the cost of running a fund or ETF. This is a percentage that represents the portion of the fund's income that is used to cover management and other operating expenses. For example, if a fund has a TER of 2%, this means that 2% of the fund's income will be deducted each year to cover management and other operating expenses.
The TER is calculated by dividing the total amount of fund expenses by the fund's net assets, multiplied by 100. The fund's net assets are the total amount of the fund's assets, less liabilities.
The TER is an important measure to consider when evaluating the different funds available in the market, as it can have a significant impact on a fund's returns over the long term. For example, a fund with a high TER will have more of its returns going towards management fees, which could reduce net returns for investors. Consequently, it is important to compare the TER of different funds to evaluate which might be the most appropriate choice based on your investment needs.
What does the volatility of an ETF represent?
The volatility of an ETF represents the amount of fluctuations or changes that the price of an ETF can experience over a given period of time. In other words, volatility measures the variability of an ETF's price over time.
ETFs that invest in more stable assets, such as government bonds or fixed income securities, tend to have lower volatility than ETFs that invest in riskier assets, such as stocks. However, the volatility of an ETF can also be influenced by other factors, such as the performance of financial markets, general economic conditions and monetary policies.
Volatility can be a useful indicator for investors, as it can give an idea of the potential risk associated with an ETF. However, it's important to note that volatility isn't the only factor to consider when evaluating an ETF. Investors should also consider other factors, such as the investment objective, risk profile and historical performance of the ETF.
What is a stock ETF?
An equity ETF (Exchange Traded Fund) is a fund that invests in a number of shares of publicly traded companies. Equity ETFs are flexible and convenient investment instruments that allow investors to buy a basket of stocks with a single transaction. In this way, investors can easily diversify their investment portfolio without having to buy individual shares or manage their positions directly.
Equity ETFs are very popular investment instruments because they offer a number of advantages over traditional mutual funds. For example, equity ETFs are usually cheaper from a fee perspective, as they have lower management fees. Additionally, equity ETFs are easily tradable on exchanges, meaning investors can buy and sell their positions at any time during trading hours.
There are numerous equity ETFs available on the market, covering a wide range of industries and geographic regions. For example, there are equity ETFs that invest in technology companies, consumer companies, financial companies, and commodity companies, just to name a few. Investors can choose to invest in equity ETFs that track a benchmark market index, such as the S&P 500 or the Dow Jones Industrial Average, or in equity ETFs that track a specific sector or regional index.
What are synthetically replicated ETFs?
Synthetic replication ETFs (Exchange Traded Funds) are funds that replicate the performance of an index or a basket of securities, using a synthetic replication technique. This means that ETFs do not buy the underlying assets directly, as is the case with most ETFs, but use financial derivative instruments, such as futures contracts or options, to replicate the performance of the underlying basket of securities.
Synthetically replicated ETFs are often used to invest in markets where it is difficult or expensive to buy the underlying assets directly, such as emerging markets or bond markets. However, this type of ETF has some characteristics that could be considered disadvantages compared to traditional ETFs. For example, synthetically replicated ETFs are subject to increased counterparty risk, as they are dependent on the credit risk of the parties with whom they have derivative contracts. Furthermore, they may exhibit discrepancies with respect to the performance of the index or the basket of underlying securities, due to changes in the prices of the derivatives used to track the index.