Why core ETFs could give you more
Marketing Communication
If you’re preparing for a camping trip, it’s crucial to pack the essentials: tent, sleeping bag, matches, water etc. A book or marshmallows, although pleasant inclusions, are not core items for a weekend in the wild.
With investing1, you could look at core funds in a similar way. These are building blocks that form the foundation of investment portfolios that could help you to construct a portfolio to deliver on your long-term objectives.
This is because a core could bring diversification1 to your investments. For retail investors, who might not have the time or resources to constantly monitor the market, diversification2 is a way to potentially manage risk and build wealth more steadily.
Most simply, it is the opposite of putting all of your (investment) eggs in one basket. At the same time as helping to reduce risk, this investment approach could also provide access to growth potential across a broad range of investment areas.
By investing in broad-based exposures, investors could focus on their longer-term financial goals by reducing concentration risk
A core range consists of building blocks that allow investors to access broad markets, capture potential growth and build a diversified2 portfolio to meet their long-term objectives.
They typically include equity funds across developed and emerging markets – whether accessed through global strategies or regional allocations – and high-quality government and investment-grade corporate bond funds.
Core funds are more long-term and strategic by design. They do not chase niche opportunities or short-term gains.
Source: Amundi, data as at end September 2025. For illustrative purpose only. May change at short notice.
In a diversified2 portfolio, core funds serve as the anchor in a strategic asset allocation. They can help to ensure that a portfolio is not overly dependent on a single market, region, or theme. This is particularly important when there is market uncertainty.
By investing1 in broad-based exposures, investors could focus on their longer-term financial goals by reducing concentration risk (which happens when a portfolio is overly reliant on one or some large investments).
A global equity core fund could help avoid home bias and provide access to leading companies worldwide, though investors should be mindful of regional weightings. Likewise, a core bond fund could help to smooth volatility and provide consistent income.
In recent years, Exchange-Traded Funds (ETFs) have come to be regarded as an efficient way to build and maintain core exposures. Their combination of diversification,2 transparency, daily liquidity and low cost could allow investors to establish a solid foundation for their portfolio, while freeing up capital and attention for more tactical or satellite allocations.
Core funds might form the engine of long-term portfolio growth. In an environment where investors face heightened uncertainty, from fluctuating interest rates to geopolitical shifts, the value of a strong core cannot be overstated.
By anchoring portfolios in broad-based exposures, investors could ensure they remain on track to meet long-term objectives, regardless of short-term market noise.
Amundi’s core ETF range is designed to help investors build a more robust portfolio.
Visit Amundi’s website to explore our Core ETFs
1 Investment involves risks. For more information, please refer to the Risk section below.2 Diversification does not guarantee a profit or protect against a loss.3 For more information, please refer to the fund’s prospectus.
