The opportunity
Active exchange-traded funds (ETFs) are an important investment innovation, offering active portfolio management alongside the benefits of the ETF structure.
BNP Paribas Asset Management’s Alpha Enhanced ETFs are designed to reduce the tracking error associated with traditional active strategies, to deliver positive net excess returns with lower risk. Instead of simply replicating an index like traditional ETFs, active ETFs seek to outperform it through careful security selection. At the same time, they aim to keep risk broadly in line with the underlying benchmark.
Active ETFs in Europe operate under the same UCITS regulatory regime as mutual funds, providing extra peace of mind for investors.
Fund highlights
Investment universe and process
The fund seeks to increase the value of its assets over the medium term by investing in shares issued by large- and mid-cap US companies, as well as by companies that operate in the US. Its reference benchmark is the S&P 500 Index1 . The investment team uses a multi-factor approach to security selection, analysing equities in terms of quality, value, low risk and momentum to create normalised scores. The objective is to maximise the overall factor score of the portfolio while adhering to risk, diversification, and ESG2 guidelines.
ESG credentials
The fund is categorised as SFDR Article 83 and applies BNP Paribas Asset Management’s proprietary ESG voting and engagement policy.4 The fund has a minimum proportion of 37% of its assets considered as sustainable investments within the SFDR framework.
Experienced and dedicated team
BNP Paribas Asset Management is a major player in ETF and index investing, with over EUR 65.5 billion in assets under management today.5 Our experienced Equity team is supported by our Quantitative Research Group, comprising 30 investment professionals dedicated to factor-based investing.
Availability
The fund is listed for sale on several stock exchanges including:
- Euronext Paris
- London Stock Exchange
- Xetra
Please contact us for more information.
[1] The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock’s weight in the index proportionate to its market value. You cannot invest directly in an index.
[2] ESG: Environmental, Social and Governance. ESG assessments are based on BNP Paribas Asset Management’s proprietary methodology, which integrates all three aspects of E, S and G.
[3] Following the new Sustainable Finance Disclosure Regulation (SFDR) that came into force on 10 March 2021, BNP PARIBAS EASY ALPHA ENHANCED US UCITS ETF is categorised under Article 8. Under this new regulation, financial entities such as BNP Paribas Asset Management that sell products in the EU are required to classify the products they manufacture or advise on into three categories: Article 9: products with a sustainable investment objective / Article 8: products promoting environmental or social characteristics / Article 6: non-sustainable products.
[4] Visit our sustainability documents page for more information
[5] BNP Paribas Asset Management, as of October 2025
Important information
Marketing communication. For professional investors only.
Past performance or achievement is not indicative of current or future performance. Performance is calculated net of fees unless otherwise stated.
Any views expressed here are those of the author as of the date of publication, based on available information, and subject to change without notice. This material does not constitute investment advice.
Investments are subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial investment. There is no guarantee that the performance objective will be achieved.
Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions).
Environmental, social and governance (ESG) investment risk: The lack of common or harmonised definitions and labels integrating ESG and sustainability criteria at EU level may result in different approaches by managers when setting ESG objectives. This also means that it may be difficult to compare strategies integrating ESG and sustainability criteria to the extent that the selection and weightings applied to select investments may be based on metrics that may share the same name but have different underlying meanings. In evaluating a security based on the ESG and sustainability criteria, the Investment Manager may also use data sources provided by external ESG research providers. Given the evolving nature of ESG, these data sources may for the time being be incomplete, inaccurate or unavailable. Applying responsible business conduct standards in the investment process may lead to the exclusion of securities of certain issuers. Consequently, performance may at times be better or worse than the performance of relatable strategies that do not apply such standards.
This is not an exhaustive list of risks. For a complete description and definition of risks, please consult a client relationship manager or the global BNP Paribas Asset Management website: staging.bnpparibas-am.co.uk.