AXA Investment Managers (AXA IM) has launched the AXA IM MSCI Emerging Markets ex-China Equity PAB UCITS ETF, expanding its range of Paris Agreement-compliant exchange-traded funds (ETFs). The new ETF provides exposure to emerging markets while excluding China, offering an alternative for investors seeking diversification.
The ETF tracks the MSCI EM ex China Climate Paris Aligned Index, which includes large and mid-cap companies in emerging markets that align with decarbonisation goals set by the Paris Agreement. The exclusion of China reflects its market maturity and dominance in traditional emerging market indices, giving investors an option to focus on other high-growth economies.
Olivier Paquier, Global Head of ETF Sales at AXA IM, noted the increasing popularity of ETFs in 2024, highlighting their role in helping investors navigate a shifting economic landscape. He emphasised that while China’s market is well-established, other emerging economies remain in the early stages of their growth trajectory, driven by strong demographics and economic potential.
“This ETF provides a way to diversify exposure to emerging markets beyond China in a simple, liquid, and structured manner,” he said.
The fund is physically managed and classified as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR). It carries a Total Expense Ratio (TER) of 0.27%.
The ETF is listed under the tickers AXQU (accumulation share class) and AXXU (distribution share class) and is available on Deutsche Boerse – XETRA (EUR & USD), Borsa Italiana (EUR), and SIX Swiss Exchange (USD).
At launch, the ETF will be available to institutional and retail investors in Austria, Denmark, Finland, France, Germany, Italy (institutional investors only until local listing), Liechtenstein, Luxembourg, Netherlands, Norway, Portugal, Spain, and Sweden.
