With the US elections over and the uncertainty of their outcome cleared up, the markets are now dealing with the uncertainty of how far Trump will be able to implement all the multitude of protectionist measures announced during the campaign. Within the concern generated by a president who plays with the threats of tariffs that could break up the calm trade relations between large economies and turn them into a war of “every man for himself”, we can draw some conclusions for the future. Within this concern, as I say, it seems clear that whatever he does, his ultimate objective, Trump’s, will be to facilitate the path for American companies to grow and generate more and more profits. His character as a successful businessman, as well as that of his collaborators, makes us think that, not without collateral damage, his measures will boost the income statement of the business fabric of the largest economy in the World. And there, as the main beneficiaries we could see small and medium-sized American companies.
As investors from the other side of the Atlantic, we have interesting assets to participate in the growth and profitability that we hope will be reflected in the Russell 2000, the index that groups the 2000 main small cap companies on Wall Street. This is the Amundi Russell 2000 ETF EUR (ISIN: LU1681038672), from the manager Amundi and launched on March 21, 2018.
Starting with your investment philosophy, The AMUNDI RUSSELL 2000 UCITS ETF seeks to replicate as closely as possible the evolution of the Russell 2000 index with net dividends reinvested, therefore, on an accumulation basis. With 902.57 million euros of assets under management as of the date of this report, latest NAV €341.58, and 1970 companies in the portfolio, His top 10 are the following:
As we say, it is a passively managed ETF, a synthetic replica with a reference index or benchmark, the Russell 2000 Net 30% Total Net (RU20N30U) and, therefore, with 100% geographic exposure to the US, and with a very interesting sector diversification:
Other information of interest, Its reference currency is the USD, but this specific ETF, class C, is quoted in €. Management fees of 0.35% and no entry, exit or success fees.
Regarding the risk, level 5, on a scale with minimum risk 1 and maximum 7 and complies with UCITS regulations.
The profitability, remembering that past profitability does not ensure future profitability, YTD is 26.4% (total profitability as of 11/29/2024), and after 10 years, accumulated, it reaches 169.25%. The annualized profitability, at one year +42.17%, at 3 years +6.09%, at 5 years 10.18% and at 10 years, profitability of 10.4%.
Profitability/risk indicators:
|
Indicators |
1 year |
3 years |
5 years |
10 years |
|
Profitability |
42.17% |
6.09% |
10.18% |
10.4% |
|
Volatility |
21.05% |
21.52% |
22.69% |
20.30% |
|
Maximum drop |
-14.76% |
-19.04% |
-29.10% |
– |
|
Beta |
0.99 |
1 |
1 |
1 |
|
R squared |
1 |
1 |
1 |
1 |
|
Correlation |
1 |
1 |
1 |
1 |
|
Tracking Error |
0.08 |
0.05 |
0.04 |
0.03 |
|
Sharpe ratio |
0.43 |
0.06 |
0.11 |
0.13 |
|
Ratio de Sortino |
0.53 |
0.06 |
0.10 |
0.13 |
|
R of Traynor |
2.52 |
0.35 |
0.72 |
0.79 |
|
Alpha |
– |
– |
– |
– |
R squared, Correlation and Tracking Error showing good fit to the reference index. Sharpe ratio, which shows us the additional profitability for every 1% of risk assumed in the form of volatility, at neutral levels; Sortino indicates additional profitability for every 1% of volatility assumed in bearish moments, also at neutral levels and a good Traynor ratio, an indicator that shows the difference in profitability between the fund and the beta-adjusted risk-free asset. Since it is a passively managed fund, well adjusted to its benchmark, the Alpha does not provide information.
It is, therefore, an investment option to position ourselves in the American market, in small capitalization companies, in a diversified way and with moderate costs.
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