Amundi Core MSCI Emerging Markets UCITS ETF Acc

What this fund is

Amundi Core MSCI Emerging Markets UCITS ETF Acc is an exchange-traded fund (ETF) from Amundi, traded under the ticker AEME (ISIN LU1437017350). It lets you buy a basket of holdings in a single trade, spreading your money across them rather than one company. In plain terms it is about owning small slices of companies, so you share in their growth when they do well — and their falls when they don't, spread across its target market. Rather than a manager picking stocks, it simply replicates the MSCI Emerging Markets Net Total Return USD Index index — the passive, low-cost approach, and its largest holdings include TAIWAN SEMICONDUCTOR MANUFAC, SAMSUNG ELECTRONIC CO LTD and SK HYNIX INC. With about 1175 holdings (the ten largest ≈ 38.4%), your money is diversified rather than concentrated in a handful of names.

By geography it is weighted towards ~28.4% Taiwan, ~21.3% South Korea and ~19.1% China. Its heaviest sectors are ~43.6% Information Technology and ~18.8% Financials. Investors often use a broad fund like this as a long-term 'core' holding — a single building block that covers much of a global portfolio in one trade. Its ongoing charge (TER) is 0.18% a year — about €18 a year on a €10,000 holding, taken automatically from the fund. It is an accumulating share class: dividends are rolled straight back in, compounding your returns rather than landing in your account as cash.

It holds the underlying investments directly (physical replication); it is domiciled in Luxembourg and UCITS-regulated, a European standard built to protect everyday investors and trades in EUR. Its price has swung about 23.5% over the past year, which describes how much its price tends to move rather than whether it is good. It launched in 2017. As with any investment, its value can go down as well as up, and past performance is not a guide to future results. (Fund data sourced from Amundi.)