Luxury ETF (DALL·E)
I reviewed this ETF some five months back and everybody loved the idea, now it’s some 20% lower and surely we now love it even more?
What’s better than buying a luxury watch? Buying the ETF of luxury goods companies producing the watch.
Luxury stocks have had a massive run with local and Switzerland listed Richemont and the Euronext Paris listed LVMH leading the way.
This surge in luxury stocks shows the demand and importantly the resilience the sector has as the ultra rich shop up a storm regardless what is happening the ground to the rest of us normal humans.
Generally we consider luxury as watches and jewellery but we also need to include alcohol, cars, luggage, perfume, clothing and even holiday experiences.
The Amundi S&P Global Luxury UCITS ETF tracks the S&P Global Luxury index and trades in both Euros and USD and we’re focusing on the USD version listed in London.
The big concern here may be that luxury stocks have run hard and maybe you want to wait for a pull back before jumping inwell here’s your pullback?
Top 10 holdings (as at 14 November 2023)
AMUNDI S&P GLOBAL LUXURY UCITS ETF Top10
The above chart from Koyfin. Get 15% discount for first 2 years
Very important is that this The ETF is synthetically replicated with a swap, meaning that it does not hold the underlying shares that make up the index. Instead the ETF managers enter into a contract with a counterparty (BNP Paribas) to exchange the returns of the index for a fee. This does introduce risk if BNP Paribas got into trouble and couldn’t honour their side of the deal.
| ETF name | Amundi S&P Global Luxury UCITS ETF (USDc) |
| London code | LUXU |
| ETF issuer | Amundi Asset Management |
| Issue date | 17 February 2014 |
| Total investment cost | 0.25% |
| ETF Benchmark | S&P Global Luxury index |
| Tax-free savings account | NOT allowed |
| Market cap | US$589million |
| Performance 1 year | +5.2% |
| Performance 3 years | +8.1% |
| Performance 5 years | +58.1% |
| Performance since listing | +79.0% |
| Dividend yield | Reinvested |
ETF blog
At Just One Lap, we are big fans of passive investment using ETFs. In this weekly blog, we discuss ETFs on the local market and the factors you need to consider when choosing an ETF. If you have wondered how one ETF differs from another, this is where you can find out. We explain which index each ETF tracks, what type of portfolio could benefit from holding each ETF, and how the costs will affect your bottom line.