AXA IM expands its ETF range with three new US exposures

A little over a year after the launch of its ETF business, AXA Investment Managers (AXA IM) continues to build out its range and announces the launch of three new ETFs exposed to the US markets, including two innovative active ETFs.

1. AXA IM USD Credit PAB UCITS ETF (ticker AIPU)

This active ETF is the USD equivalent of the AXA IM Euro Credit PAB UCITS ETF (ticker AIPE) launched in July¹. Focusing on US investment grade credit included in the ICE® US Corporate Paris-Aligned Absolute Emissions Index®, this ETF seeks to meet carbon emissions reduction targets, including green, social and sustainability bonds.

This ETF is the first of its kind in this category and is actively managed. Its objective is to outperform its benchmark, net of management fees, over the long-term, with a proprietary strategy relying on the credit risk monitoring developed within AXA IM’s US fixed income research teams, with two particular focuses: a low deviation from the benchmark and an objective of decarbonisation footprint aligned with the carbon emission of the PAB parent index.

The annual Total Expense Ratio (TER) is set at 0.18% maximum. The ETF is listed on, the German stock exchange, in USD with AIPU as the ticker.

2. AXA IM US High Yield Opportunities UCITS ETF (ticker AHYU)

This active ETF focuses on the USD high yield corporate bonds universe included in the ICE® BofA® US High Yield Index.

This is the first actively managed ETF of its kind on the market. It seeks high income and long-term growth, in USD, from an actively managed porfolio of high yield bonds. The portfolio construction applies the credit selection and credit risk monitoring developed by AXA IM’s US high Yield fixed income research teams. Though actively managed, this ETF will have a low deviation from the benchmark.

This ETF will soon be listed on Xetra, the German stock exchange. The annual Total Expense Ratio (TER) will reach a maximum of 0.35%.

3. AXA IM MSCI USA Equity PAB UCITS ETF ​ (ticker AIUU)

This ETF aims to replicate the performance of the MSCI USA Climate Paris Aligned Index®, net of management fees, allowing investors to invest in large and mid-cap companies listed on the US equity markets that are following a decarbonization trajectory consistent with the objectives of the Paris Agreement.

It supplements AXA IM's range of ESG integrated products and ETFs exposed to the US markets.

The annual Total Expense Ratio (TER) will reach a maximum of 0.20% and the ETF will be listed on Xetra, the German stock exchange soon.

The three ETFs will be managed in a physical manner and are classified as Article 8 under the Sustainable Finance Disclosure Regulation². ​
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Following their listings, the ETFs will be available to institutional as well as retail investors in Austria, Germany, Denmark, Finland, France, Italy, Luxembourg, Netherlands, Norway, Spain and Sweden.

Following their listings, the ETFs will be available to institutional as well as retail investors in Austria, Germany, Denmark, Finland, France, Italy, Luxembourg, Netherlands, Norway, Spain and Sweden.

Nicolas-Louis Guille-Biel, Global Head of ETF and Product Strategy at AXA IM, added : “The expansion of our ETF range, anchored around innovation and/or responsible investing, is essential if we want to become a leader in the UCITS ETF market by 2026. In this respect, we’ve accelerated our development in 2023 with the expansion of our ETF offer to credit, with a range that has more than doubled since January, and also with the strengthening of our specific expertise in distribution and product management. Our range, relying on AXA IM’s recognised expertise, encompasses seven ETFs and includes core building blocks and thematics ETFs.”

Global Head of ETF Sales at AXA IM, said: “US exposures represent a core building block for UCITS ETFs investors, hence our decision to strengthen our ETF range investing in this region, while carefully leveraging on our long-standing experience thereby offering investors several of our expertise in an ETF wrapper, both through active and indexed management, with bonds and equities exposures”.

There can be no assurance that the ETFs will achieve their investment objective. Risk of loss: Investors may lose part of or entirely the invested capital depending on market conditions..

Key Risks
​Interest rate risk: This corresponds to the risk of depreciation in rate-based instruments over either the short or medium term stemming from interest rate variations. For purposes of illustration, the price of a fixed-rate bond tends to decrease as interest rates increase. The Fund is particularly exposed to bonds and other debt securities; in the event of a rise in interest rates, the value of assets invested at a fixed rate may fall.

Credit risk: In the event of default or deterioration of the quality of private bond issuers (for example, a reduction in rating), the value of debt securities in which the Fund is invested may fall. ​ In such case, the Net Asset Value of the Fund may fall.

Derivatives Risk and Leverage: The Fund may use both listed and OTC derivatives for investment or hedging purposes. These instruments are volatile and may be subject to various types of risks, including but not limited to market risk, liquidity risk, credit risk, counterparty risk, legal risk and operations risks. In addition, the use of derivatives can involve significant economic leverage and may, in some cases, involve significant risks of loss. Furthermore, investments in OTC derivatives may have limited secondary markets liquidity and it may be difficult to assess the value of such a position and its exposure to risk. For these reasons, there can be no guarantee that strategies using derivatives instruments will meet their expected target.

Counterparty risk: This is the risk of default (or counterparty’s failure to perform any of its obligations) of any counterparties of the Fund to any OTC financial derivatives transactions. The counterparty’s default (or the counterparty’s failure to perform any of its obligations) under these transactions may have a material adverse effect on the Net Asset Value of the Fund.

Given the investment strategy of the Fund and its risk profile, the likely impact of sustainability risks on the Fund’s returns is expected to be low.

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

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

Risks related to global investing: Investments in foreign securities offer potential advantages that investments made exclusively in securities denominated in the Base Currency of the fund do not offer.

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

^{1 https://www.axa-im.fr/espace-presse/axa-im-etend-sa-gamme-detf-avec-le-premier-euro-credit-pab-ucits-etf-du-marche-gere-activement ​}

^{2 The classification of the AXA IM USD Credit PAB UCITS ETF, the AXA IM US High Yield Opportunities UCITS ETF and the AXA IM MSCI USA Equity PAB UCITS ETF under SFDR may be subject to adjustments and amendments, since SFDR has come into force recently only and certain aspects of SFDR may be subject to new and/or different interpretations than those existing at the date of this prospectus. As part of the ongoing assessment and current process of classifying its financial products under SFDR, the Manager reserves the right, in accordance with and within the limits of applicable regulations and of the AXA IM USD Credit PAB UCITS ETF, the AXA IM US High Yield Opportunities UCITS ETF and the AXA IM MSCI USA Equity PAB UCITS ETF’s legal documentations, to amend the classification of the Funds from time to time to reflect changes in market practice, its own interpretations, SFDR-related laws or regulations or currently-applicable delegated regulations, communications from national or European authorities or court decisions clarifying SFDR interpretations. Investors are reminded that they should not base their investment decisions on the information presented under SFDR only.}

^{About the press release}

^{This press release should not be regarded as an offer, solicitation, invitation or recommendation to subscribe for any investment service or product and is provided for information purposes only. No financial decisions should be made on the basis of information provided.}

^{This press release does not constitute on the part of AXA Investment Managers a solicitation or investment, legal or tax advice. This material does not contain sufficient information to support an investment decision.}

^{Due to its simplification, this document is partial and opinions, estimates and forecasts herein are subjective and subject to change without notice. There is no guarantee forecasts made will come to pass. Data, figures, declarations, analysis, predictions and other information in this document is provided based on our state of knowledge at the time of creation of this document. Whilst every care is taken, no representation or warranty (including liability towards third parties), express or implied, is made as to the accuracy, reliability or completeness of the information contained herein. Reliance upon information in this material is at the sole discretion of the recipient. This material does not contain sufficient information to support an investment decision.}

^{Before making an investment, investors should read the relevant Prospectus and the Key Investor Information Document / scheme documents, which provide full product details including investment charges and risks. The information contained herein is not a substitute for those documents or for professional external advice.}

^{The products or strategies discussed in this document may not be registered nor available in your jurisdiction. Please check the countries of registration with the asset manager, or on the local web sites https://www.axa-im.com/en/ , where the funds and share classes published are filtered according to country of registration and investors’ profile. ​ In particular units of the funds may not be offered, sold or delivered to U.S. Persons within the meaning of Regulation S of the U.S. Securities Act of 1933. The tax treatment relating to the holding, acquisition or disposal of shares or units in the fund depends on each investor’s tax status or treatment and may be subject to change. Any potential investor is strongly encouraged to seek advice from its own tax advisors.}

^{UCITS ETF’s units / shares purchased on the secondary market cannot usually be sold directly back UCITS ETF. Investors must buy and sell units / shares 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 / shares and may receive less than the current net asset value when selling them.}

^{For more information on sustainability-related aspects please visit https://www.axa-im.com/what-is-sfdr. The classification of the AXA IM Euro Credit PAB UCITS ETF, the AXA IM US High Yield Opportunities UCITS ETF and the AXA IM MSCI USA Equity PAB UCITS ETF under SFDR may be subject to adjustments and amendments, since SFDR has come into force recently only and certain aspects of SFDR may be subject to new and/or different interpretations than those existing at the date of this [Prospectus]. As part of the ongoing assessment and current process of classifying its financial products under SFDR, [the Manager] reserves the right, in accordance with and within the limits of applicable regulations and of the AXA IM Euro Credit PAB UCITS ETF’s, AXA IM US High Yield Opportunities UCITS ETF’s, AXA IM MSCI USA Equity PAB UCITS ETF’s [legal documentation], to amend the classification of the Fund from time to time to reflect changes in market practice, its own interpretations, SFDR-related laws or regulations or currently-applicable delegated regulations, communications from national or European authorities or court decisions clarifying SFDR interpretations. Investors are reminded that they should not base their investment decisions on the information presented under SFDR only.}

^{For investors located in the European Union: Please note that the management company reserves the right, at any time, to no longer market the product(s) mentioned in this communication in the European Union by filing a notification to its supervision authority, in accordance with European passport rules.}

^{In the event of dissatisfaction with AXA Investment Managers products or services, you have the right to make a complaint, either with the marketer or directly with the management company (more information on AXA IM complaints policy is available in English: https://www.axa-im.com/important-information/comments-and-complaints ). If you reside in one of the European Union countries, you also have the right to take legal or extra-judicial action at any time. The European online dispute resolution platform allows you to submit a complaint form (available at: https://ec.europa.eu/consumers/odr/main/index.cfm?event=main.home.chooseLanguage) and provides you with information on available means of redress (available at: https://ec.europa.eu/consumers/odr/main/?event=main.adr.show2).
​Summary of investor rights in English is available on AXA IM website https://www.axa-im.com/important-information/summary-investor-rights. Translations into other languages are available on local AXA IM entities’ websites.}

^{AXA IM Euro Credit PAB UCITS ETF, AXA IM US High Yield Opportunities UCITS ETF and AXA IM MSCI USA Equity PAB UCITS ETF are sub-funds of the Irish-domiciled ICAV AXA IM ETF with registered address at 33 Sir John Rogerson’s Quay, Dublin 2, Ireland, and registered with the Central Bank of Ireland under the number C469468. AXA IM ETF ICAV is a collective asset-management vehicle under the European UCITS directive. It is managed by AXA Investment Managers Paris, a company incorporated under the laws of France, having its registered office located at Tour Majunga, 6 place de la Pyramide, 92800 Puteaux, registered with the Nanterre Trade and Companies Register under number 353 534 506, and a Portfolio Management Company, holder of AMF approval no. GP 92008, issued on 7 April 1992.}

^{Source ICE Data indices, LLC (“ICE Data”), is used with permission. ICE® is a registered trademark of ice data or its affiliates, and BofA® is a registered trademark of Bank of America Corporation licensed by Bank of America Corporation and its affiliates ("BofA") and may not be used without BofA's prior written approval. ICE Data, its affiliates and their respective third party suppliers disclaim any and all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included in, related to, or derived therefrom. Neither ice data, its affiliates nor their respective third party suppliers shall be subject to any damages or liability with respect to the adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof are provided on an “as is” basis and your use is at your own risk. ICE Data, its affiliates and their respective third party suppliers do not sponsor, endorse, or recommend AXA Investment Managers, or any of its products or services.}

^{The MSCI USA Climate Paris Aligned Index was used by AXA IM as the reference universe for selection of the companies included in the AXA IM MSCI USA Equity PAB UCITS ETF. MSCI does not in any way sponsor, support, promote or endorse the AXA IM MSCI USA Equity PAB UCITS ETF. MSCI was not and is not involved in any way in the creation, calculation, maintenance, or review of the AXA IM MSCI USA Equity PAB UCITS ETF. The MSCI USA Climate Paris Aligned Index was provided on an “as is” basis. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating the MSCI USA Climate Paris Aligned Index (collectively, the “MSCI Parties”) expressly disclaim all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose). Without limiting any of the foregoing, in no event shall any of the MSCI Parties have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages in connection with the MSCI USA Climate Paris Aligned Index or the AXA IM MSCI USA Equity PAB UCITS ETF.}

^{Issued by AXA Investment Managers Paris – Tour Majunga – 6, place de la Pyramide – 92908 Paris La Défense cedex, France.}

^{About AXA Investment Managers}

^{AXA Investment Managers (AXA IM) is a responsible asset manager, actively investing for the long term to help its clients, its people and the world to prosper. Our high conviction approach enables us to uncover what we believe to be the best global investment opportunities across alternative and traditional asset classes, managing approximately €842* billion in assets as at the end of September 2023.}

^{AXA IM is a leading investor in green, social and sustainable markets, managing €489 billion of ESG-integrated, sustainable and impact assets as at the end of December 2022. We are committed to reaching net zero greenhouse gas emissions by 2050 across all our assets, and integrating ESG principles into our business, from stock selection to our corporate actions and culture. Our goal is to provide clients with a true value responsible investment solution, while driving meaningful change for society and the environment.}

^{At end of December 2022, AXA IM employs over 2,600 employees around the world, operates out of 24 offices across 18 countries and is part of the AXA Group, a worldwide leader in insurance and asset management.}

^{* Includes the contribution from Architas and AXA IM Prime, net of intercompany elimination.}

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