Global financial services company UBS Asset Management is introducing a sustainable global exchange-traded fund, focusing on environmentally and socially responsible investments.
UBS Asset Management has entered the sustainable exchange-traded fund (ETF) market with the launch of the UBS ETF (IE) MSCI World Small Cap Socially Responsible UCITS ETF (ISIN: IE00BKSCBX74). This new ETF aims to track companies with the strongest sustainability profiles from the MSCI World Small Cap index.
The UBS ETF is an investment in global small-cap stocks, based on the MSCI World Small Cap SRI Low Carbon Select 5% Issuer Capped index. It achieves its sustainability focus through filters that exclude companies based on certain norms, values, and climate-related criteria. The specific criteria used for excluding companies are not detailed, but the ETF does exclude companies involved in tobacco, controversial weapons, heating and power coal, oil, and gas.
The UBS ETF uses a best-in-class approach, selecting the stocks with the highest ESG (Environmental, Social, and Governance) rating in each sector to cover 25% of the market capitalization of the MSCI World Small Cap. This approach ensures that the ETF invests in companies that demonstrate strong sustainability practices.
The management fee for the UBS ETF is 0.23% per year, making it a competitive option for investors seeking sustainable small-cap exposure. However, the performance or expected return of the UBS ETF is not mentioned in the given context, so it is not clear how the ETF has performed since its launch.
UBS Asset Management is the leader behind this new sustainable ETF. Aleksandar Ivanovic, the division head of UBS Asset Management, is involved in the launch of the new ETF focused on global small- and mid-cap companies. The ETF is compliant with Article 8 of the Sustainable Finance Disclosure Regulation of the European Union (SFDR), demonstrating UBS Asset Management's commitment to sustainable investing.
The UBS ETF is not specified as a new product in the given context, so it is not clear if it is already available for investment. Interested investors should consult their financial advisors to determine if the UBS ETF is suitable for their investment portfolios.
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