AXA IM strengthens its ETF range with new exposure to emerging markets excluding China

• AXA IM has launched its 15^th ETF, offering a new diversification option for investors seeking to capture the growth potential of emerging markets outside China.
• 2024 was a year of acceleration and growth for AXA IM’s ETF business, with the launch of five new ETFs. Assets under management rose by $1.2bn over the year to reach $3bn mark¹

AXA Investment Managers (AXA IM) today announced the launch of the AXA IM MSCI Emerging Markets ex-China Equity PAB UCITS ETF. The fifteenth ETF launched by AXA IM completes the range of ETFs compliant with the Paris Agreement²  (Paris Aligned Benchmark) and offers exposure to the growth potential of the main emerging markets, excluding China.

This new indexed ETF tracks the performance of the MSCI EM ex China Climate Paris Aligned Index®, net of management fees, both upwards and downwards. This index provides an exposure to large and mid-cap companies listed in the most dynamic emerging markets, which we believe have strong growth potential and are aligned with a decarbonization trajectory compatible with the objectives of the Paris Agreement (Paris Aligned Benchmark). With this ETF, investors can diversify their allocation while gaining exposure to emerging markets with a significant reservoir of economic growth and strong demographic trends. The exclusion of China, linked to the depth, maturity and usual overweight of this market in emerging market index, offers investors a differentiating diversification option.

Olivier Paquier, Global Head of ETF Sales at AXA IM, said: “The record levels of inflows achieved by ETFs in 2024 are striking proof that an ever-growing number of investors are turning to this type of vehicle to cope with the global context of risks and opportunities. In the wake of this trend, and with the development of a comprehensive and competitive range, AXA IM's ETFs enjoyed excellent momentum in terms of inflows and assets under management throughout 2024.

With this new ETF, we aim to offer investors an allocation building block enabling them to gain exposure to a market offering excellent prospects: while China today has a mature and complex market, other emerging markets, bolstered in particular by their strong demographics, are only in the early stages of their potential economic growth. This exposure is particularly relevant, as it can enable investors to combine diversification with exposure to emerging markets outside China, in a simple, diversified and liquid way”.

This ETF is managed in a physical manner³  and is classified as Article 8 under the Sustainable Finance Disclosure Regulation⁴  (SFDR). This ETF charges a Total Expense Ratio (TER) of 0.27%

AXA IM MSCI Emerging Markets ex-China Equity PAB UCITS ETF (tickers: AXQU for the accumulation share class and AXXU for the distribution share class) is available in USD and ER on Deutsche Boerse – XETRA, in EUR on Borsa Italiana and in USD on SIX Swiss Exchange.

At launch, the ETF will be available to institutional and retail investors in Austria, Denmark, Finland, France, Germany, italy (limited to institutional investors pending its listing in Italy), Liechtenstein, Luxembourg, Netherlands, Norway, Portugal, Spain and Sweden.

There can be no assurance that the ETFs will achieve their investment objective. It is recommended that an investment in one or more of these ETFs does not constitute a substantial part of an investment portfolio and may not be suitable for all investors.

Index tracking risk: there is no guarantee that the Fund will achieve perfect replication of its market index, and it may be subject to tracking error risk, i.e. the risk that its returns do not exactly follow those of its index at all times.

Capital loss risk: investors may lose some or all of the capital invested, depending on market conditions.

Equity risk: share prices may fluctuate based on investors' expectations or forecasts, which may result in high volatility risk.

Global investment risk: Investments in foreign securities offer potential advantages not available from investments exclusively in securities denominated in the fund's reference currency.

Foreign exchange risk: Any money paid to you will be in another currency, so your ultimate gain will depend on the exchange rate between the two currencies.

Emerging markets risk: The AXA IM MSCI Emerging Markets Equity PAB UCITS ETF invests in emerging markets securities, which may be subject to additional risk factors such as political and economic factors, counterparty and liquidity risks, and legal risks.

The market price of an index ETF may not be identical to its net asset value at all times. The index ETF aims to replicate the performance of the index, and its trading price may differ from its net asset value and that of the index.

The list above of risk factors is not exhaustive. Please refer to the prospectus for full product details and complete information on the risks.

The ESG data used in the investment process is based on ESG methodologies that rely on data supplied by third parties. They are subjective and may evolve over time. Despite several initiatives, the absence of harmonized definitions can make ESG criteria heterogeneous. As a result, the various investment strategies that use ESG criteria and ESG reporting are difficult to compare with one another. Strategies that integrate ESG criteria and those that integrate sustainable development criteria may use ESG data that appear similar, but need to be distinguished because their calculation methods may be different.

For more information on ETFs, including net asset values, visit the local fund center at ETFs | AXA IM Core (axa-im.com). The value of investments may fall as well as rise and you may not get back the full amount invested.

About AXA Investment Managers

AXA Investment Managers (AXA IM) is a leading global asset manager offering a diverse range of global investment opportunities in both alternative and traditional asset classes. Through our products we aim to diversify and grow portfolios, while delivering long-term investment performance and value for clients.

AXA IM manages approximately €869 billion in assets*, and has €480 billion of ESG-integrated, sustainable or impact assets**. Our purpose is to act for human progress by investing for what matters. As a responsible asset manager, we are committed to integrating ESG principles across our business, from stock selection to our corporate actions and culture.

Part of the AXA Group, a worldwide leader in insurance and asset management, AXA IM employs over 2,900 employees and operates from 24 offices in 19 countries globally***.

*As at the end of September 2024, including non-consolidated entities.

** As at the end of December 2023.

*** As at the end of December 2024.

Visit our website: www.axa-im.com 

Follow us on LinkedIn

Visit our media centre: www.axa-im.com/en/media-centre