ETF implementation in 2025:
Finding bright spots
Explore our ETF investment convictions.
We believe that ETFs could play a key role in your investment portfolio in 2025 and beyond. At Amundi ETF, we offer you a range of potential opportunities you could consider across asset classes and regions.
Seeking opportunities
In 2025 we will mark the 130th anniversary of the Lumière brothers hosting the world’s first ever cinema screening. In other notable milestones, the VW Beetle prototype was unveiled 90 years ago. And a quarter of a century ago, the first European ETF made its debut on the market.
The Lumières would no doubt have struggled to predict that motion pictures could be ‘streamed’ on a device that could fit in a pocket.
Similarly, investors in the year 2000 might have been surprised to learn that in the near future ETFs would be traded by central banks, sovereign wealth funds, global banks and – through the mere click of a few buttons – by individuals like you.
In a similar way, we don’t know what milestones and surprises 2025 might hold. However, we do think that there could be some bright spots for ETF investors despite the prevailing economic uncertainty and political volatility. It’s generally considered a good idea to diversify1 your portfolio to balance potential growth and risk.
In this 2025 ETF implementation guide, we provide you with a selection of possible investment opportunities across asset classes and regions.
Equities: capture growth potential
A long-term allocation to global equities can help balance potential risks and capture opportunities across diverse regions and industries.
Broad strategies, such as an All-Country World Index, provide exposure to over 3,000 stocks, while a World Index covers over 1,500 stocks. These approaches reduce reliance on any single market or economy.
Although some investors may prefer to ‘keep it local’ and focus on their home market, this strategy can result in missed global opportunities and increase concentration risk2 — the potential for significant losses due to overexposure to a single market.
Elsewhere, the size and innovation of US equities has made them a key portfolio component for many investors.
The US stock market’s remarkable growth in recent years3 has largely been driven by so-called mega cap4 companies. This has heightened concentration risk2, which may prompt you to consider strategies that balance your allocation across smaller players in the market.
You could also explore opportunities in other developed markets, along with high-growth prospects in Asian emerging markets.
Key takeaways
- A global equities strategy could serve as a core building block in your portfolio, capturing growth trends in economies all over the world.
- A US small caps index might be worth exploring as smaller companies are currently undervalued vs larger stocks, offering potential for growth.
- European equity strategies provide an opportunity to invest at a relative discount to their US counterparts.
- A Japanese equity strategy could be attractive due to reforms in the local market, which have made it more transparent and competitive.
- Emerging market equities with a blended strategy towards Asia could capture growth across India, Indonesia, Vietnam, Taiwan and South Korea.
- An Indian equity index may suit investors seeking a single country focus, given the recent positive economic trends5 in the country.
Fixed income: the search for income
Compared to equity investments, bonds are generally viewed as less risky, although they are not risk-free. Amid continued uncertainty, and with interest rates still relatively high, there is a good case for sticking with higher-quality bonds. As such, investment grade corporate credit could be a solid option for your portfolio. Meanwhile, government bonds, a key element in many investment portfolios, are likely to offer attractive income opportunities as inflation continues to ease.
Key takeaways
- US Treasury strategies could offer the potential for strong performance as long as the US economy keeps growing.
- A European sovereign debt index might be an option if we continue to see resilient economic activity in Europe and disinflation persists.
- A green-tilted index could also offer you a means to combine a responsible investment angle with a core European government bond strategy.
Responsible investment: the journey continues
The re-election of Donald Trump as US president could pose a challenge for sustainable energy, as he tends to favour cheaper fossil fuels. However, the global net zero journey continues. One way to support this goal is through responsible investment options.
Key takeaways
- Climate Transition Benchmark (CTB) strategies are designed to help reduce carbon emissions without compromising on performance.
- A green-tilted index can be a good solution if you would like to invest in European government bonds, but with the added advantage of investing 30% in green bonds, which support environmentally friendly projects.
Thematics: designing a new world
Among transformative long-term themes, it is Artificial Intelligence (AI) that is largely in focus because of its remarkable acceleration in recent years. AI tech providers such as semiconductor companies have helped to facilitate this growth – a trend that is expected to continue.
Key takeaways
- A robotics and AI strategy encompassing chipmakers, cloud operators, and data centres could provide you with exposure to this rapidly-evolving sector.
- A semiconductor index could be a more specific allocation as this tech is used in most electronics, representing about one-third of the global IT sector weight.
You should always consider your risk tolerance, investment horizon, and personal values before investing.
At Amundi ETF, we aim to provide a wide range of products and strategies to cater to a variety of investors, regardless of where you are on your investment journey.
1. Diversification does not guarantee a profit or protect against a loss.
2. The potential for significant losses due to overexposure to a single asset, sector or market.
3. Past performance is not indicative of future returns.
4. These are companies with a market capitalisation in excess of $200 billion.
5. Past market trends are not a reliable indicator of future ones.
Information on Amundi’s responsible investing can be found on amundietf.com and amundi.com. The investment decision must take into account all the characteristics and objectives of the Fund, as described in the relevant Prospectus.
KNOWING YOUR RISK
It is important for potential investors to evaluate the risks described below and in the fund’s Key Investor Information Document (“KIID”) and prospectus available on our website www.amundietf.com.
CAPITAL AT RISK - ETFs are tracking instruments. Their risk profile is similar to a direct investment in the underlying index. Investors’ capital is fully at risk and investors may not get back the amount originally invested.
UNDERLYING RISK - The underlying index of an ETF may be complex and volatile. For example, ETFs exposed to Emerging Markets carry a greater risk of potential loss than investment in Developed Markets as they are exposed to a wide range of unpredictable Emerging Market risks.
REPLICATION RISK - The fund’s objectives might not be reached due to unexpected events on the underlying markets which will impact the index calculation and the efficient fund replication.
COUNTERPARTY RISK - Investors are exposed to risks resulting from the use of an OTC swap (over-the-counter) or securities lending with the respective counterparty(-ies). Counterparty(-ies) are credit institution(s) whose name(s) can be found on the fund’s website amundietf.com. In line with the UCITS guidelines, the exposure to the counterparty cannot exceed 10% of the total assets of the fund.
CURRENCY RISK – An ETF may be exposed to currency risk if the ETF is denominated in a currency different to that of the underlying index securities it is tracking. This means that exchange rate fluctuations could have a negative or positive effect on returns.
LIQUIDITY RISK – There is a risk associated with the markets to which the ETF is exposed. The price and the value of investments are linked to the liquidity risk of the underlying index components. Investments can go up or down. In addition, on the secondary market liquidity is provided by registered market makers on the respective stock exchange where the ETF is listed. On exchange, liquidity may be limited as a result of a suspension in the underlying market represented by the underlying index tracked by the ETF; a failure in the systems of one of the relevant stock exchanges, or other market-maker systems; or an abnormal trading situation or event.
VOLATILITY RISK – The ETF is exposed to changes in the volatility patterns of the underlying index relevant markets. The ETF value can change rapidly and unpredictably, and potentially move in a large magnitude, up or down.
CONCENTRATION RISK – Thematic ETFs select stocks or bonds for their portfolio from the original benchmark index. Where selection rules are extensive, it can lead to a more concentrated portfolio where risk is spread over fewer stocks than the original benchmark
IMPORTANT INFORMATION
This information is not for distribution and does not constitute an offer to sell or the solicitation of any offer to buy any securities or services in the United States or in any of its territories or possessions subject to its jurisdiction to or for the benefit of any U.S. Person (as defined in the prospectus of the Funds or in the legal mentions section on www.amundi.com and www.amundietf.com. The Funds have not been registered in the United States under the Investment Company Act of 1940 and units/shares of the Funds are not registered in the United States under the Securities Act of 1933.
This document is of a commercial nature. The funds described in this document (the “Funds”) may not be available to all investors and may not be registered for public distribution with the relevant authorities in all countries. It is each investor’s responsibility to ascertain that they are authorised to subscribe, or invest into this product. Prior to investing in the product, investors should seek independent financial, tax, accounting and legal advice.
This is a promotional and non-contractual information which should not be regarded as an investment advice or an investment recommendation, a solicitation of an investment, an offer or a purchase, from Amundi Asset Management (“Amundi”) nor any of its subsidiaries.
Any decision to invest must be based solely on the information contained in the relevant Fund’s Prospectus, Key Investor Information Document and the latest half-yearly report and unaudited accounts and/or annual report and audited accounts. Investors should read the fund specific risks in the Key Investor Information Document and the relevant Fund’s Prospectus.
The Funds are Amundi UCITS ETFs. The Funds can either be denominated as “Amundi ETF” or “Lyxor ETF”. Amundi ETF designates the ETF business of Amundi.
Amundi UCITS ETFs are passively-managed index-tracking funds. The Funds are French or Luxembourg open ended mutual investment funds respectively approved by the French Autorité des Marchés Financiers or the Luxembourg Commission de Surveillance du Secteur Financier, and authorised for marketing of their units or shares in various European countries (the Marketing Countries) pursuant to the article 93 of the 2009/65/EC Directive.
The Funds can be French Fonds Communs de Placement (FCPs) and also be sub-funds of the following umbrella structures:
For Amundi ETF:
- Amundi Index Solutions, Luxembourg SICAV, RCS B206810, located 5, allée Scheffer, L-2520, managed by Amundi Luxembourg S.A.
For Lyxor ETF:
- Multi Units France, French SICAV, RCS 441 298 163, located 91-93, boulevard Pasteur, 75015 Paris, France, managed by Amundi Asset Management
- Multi Units Luxembourg, RCS B115129 and Lyxor Index Fund, RCS B117500, both Luxembourg SICAV located 9, rue de Bitbourg, L-1273 Luxembourg, and managed by Amundi Asset Management
- Lyxor SICAV, Luxembourg SICAV, RCS B140772, located 5, Allée Scheffer, L-2520 Luxembourg, managed by Amundi Luxembourg S.A.
Before any subscriptions, the potential investor must read the offering documents (KID and prospectus) of the Funds. The prospectus in French for French UCITS ETFs, and in English for Luxembourg UCITS ETFs, and the KID in the local languages of the Marketing Countries are available free of charge on www.amundi.com, www.amundi.ie or www.amundietf.com. They are also available from the headquarters of Amundi Luxembourg S.A. (as the management company of Amundi Index Solutions and Lyxor SICAV), or the headquarters of Amundi Asset Management (as the management company of Amundi ETF French FCPs, Multi Units Luxembourg, Multi Units France and Lyxor Index Fund),. For more information related to the stocks exchanges where the ETF is listed please refer to the fund’s webpage on amundietf.com.
Investment in a fund carries a substantial degree of risk (i.e. risks are detailed in the KID and prospectus). Past Performance does not predict future returns. Investment return and the principal value of an investment in funds or other investment product may go up or down and may result in the loss of the amount originally invested. All investors should seek professional advice prior to any investment decision, in order to determine the risks associated with the investment and its suitability.
It is the investor’s responsibility to make sure his/her investment is in compliance with the applicable laws she/he depends on, and to check if this investment is matching his/her investment objective with his/her patrimonial situation (including tax aspects).
Please note that the management companies of the Funds may de-notify arrangements made for marketing as regards units/shares of the Fund in a Member State of the EU or the UK in respect of which it has made a notification.
A summary of information about investors’ rights and collective redress mechanisms can be found in English on the regulatory page at https://about.amundi.com/Metanav-Footer/Footer/Quick-Links/Legal-documentation with respect to Amundi ETFs.
This document was not reviewed, stamped or approved by any financial authority.
This document is not intended for and no reliance can be placed on this document by persons falling outside of these categories in the below mentioned jurisdictions. In jurisdictions other than those specified below, this document is for the sole use of the professional clients and intermediaries to whom it is addressed. It is not to be distributed to the public or to other third parties and the use of the information provided by anyone other than the addressee is not authorised.
This material is based on sources that Amundi and/or any of her subsidiaries consider to be reliable at the time of publication. Data, opinions and analysis may be changed without notice. Amundi and/or any of her subsidiaries accept no liability whatsoever, whether direct or indirect, that may arise from the use of information contained in this material. Amundi and/or any of her subsidiaries can in no way be held responsible for any decision or investment made on the basis of information contained in this material.
Updated composition of the product’s investment portfolio is available on www.amundietf.com. Units of a specific UCITS ETF managed by an asset manager and purchased on the secondary market cannot usually be sold directly back to the asset manager itself. Investors must buy and sell units on a secondary market with the assistance of an intermediary (e.g. a stockbroker) and may incur fees for doing so. In addition, investors may pay more than the current net asset value when buying units and may receive less than the current net asset value when selling them.
Indices and the related trademarks used in this document are the intellectual property of index sponsors and/or its licensors. The indices are used under license from index sponsors. The Funds based on the indices are in no way sponsored, endorsed, sold or promoted by index sponsors and/or its licensors and neither index sponsors nor its licensors shall have any liability with respect thereto. The indices referred to herein (the “Index” or the “Indices”) are neither sponsored, approved or sold by Amundi nor any of its subsidiaries. Neither Amundi nor any of its subsidiaries shall assume any responsibility in this respect.
In EEA Member States, the content of this document is approved by Amundi for use with Professional Clients (as defined in EU Directive 2004/39/EC) only and shall not be distributed to the public.
Information reputed exact as of the date mentioned above.
Reproduction prohibited without the written consent of Amundi.