Key Morningstar Metrics for Amundi EUR Corporate Bond Climate Paris Aligned UCITS ETF CRPX
- : BronzeMorningstar Medalist Rating
- : AverageProcess Pillar
- : Above AveragePeople Pillar
- : AverageParent Pillar
Amundi Euro Corp Bond Climate Paris Aligned is a low-cost exchange-traded fund option for investors targeting decarbonization of the corporate bond sleeve of a portfolio. In January 2023, this fund switched from a standard ESG to a Paris-aligned benchmark. This implied a change from a broad ESG approach based on exclusions and best-in-class selection to one focused on annual decarbonization targets above the minimum standards of the EU PAB label of 7%. Originally, the index targeted a 10.00% annual decarbonization; since August 2025, the target is 7.35%.
Buying into an ESG—in this case, PAB proposition—means that investors are exposed to sector biases. For this fund, the main underweighting is in energy. These biases can work in favor of or against the fund depending on market conditions.
The index of this fund incorporates an optimizer designed to minimize active risk relative to the non-ESG-screened parent coverage. However, once the changes come through, the optimizer will also explicitly aim to limit turnover to keep managing costs in check. The decrease of the annual decarbonization target, as well as other changes implemented on the ESG screening—for example, lowering the minimum target weight of green bonds in the portfolio—has brought the index closer to its non-ESG parent benchmark.
The index’s expected risk/return profile relative to its non-ESG-screened parent benchmark over the long term and the fund’s low cost are positive factors. But ultimately, this is a market where there is value in active management, for example, via targeted sector and company calls.
Amundi EUR Corporate Bond Climate Paris Aligned UCITS ETF: Performance Highlights
The compounding benefits of low fees are crucial for long-term returns. Typically, passive funds in this category are pure corporate bond propositions, whereas the average active peer ventures into agency and collateralized bonds to limit risk. Also, some active managers may venture into high yield to prop up returns. This is something that passive funds cannot do.
Buying into a standard ESG or PAB proposition means investors are exposed to sector biases. These can work for or against, depending on market conditions. The screening leads to an exclusion of around 25% of bonds from the parent universe, an underweighting in energy and utility issuers, and an overweighting in industrials and real estate. However, the index has the same duration as its non-ESG parent benchmark.
The portfolio’s slight quality bias may make it lag a bit relative to the broader corporate bond universe at times when markets are on the up, but by the same token, it could cushion the downside.
The compounding benefits of low fees will provide a nice tailwind for returns, but ultimately, this is a market exposure where experienced active managers may add value via targeted duration, sector, or company calls.
