One exit and one entry in our Active Euro Portfolio – 03/08/17

We decide to exit the ETF Lyxor JPN (Topix Index Japan) of the Active Euro portfolio, while the index continues to underperform the stoxx600 and is entering into a correction phase. We are replacing it with a much more defensive ETF with a positive momentum and a significant upward potential in the short and medium term: the Amundi CC4 ETF (corporate bond index). CC4 has a more defensive profile and is composed of 75 corporate bonds selected on the basis of liquidity criteria, denominated in euro. We believe that the current rather corrective phase on the European indices lead to this  type of arbitrage.

CC4 (Amundi Euro corporates) : weekly data