UBS cross-lists four EUR-hedged ESG ETFs on Deutsche Börse

Jan 18th, 2018 | By | Category: Equities

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UBS Global Asset Management has cross-listed four currency-hedged ESG-themed ETFs on Deutsche Börse.

UBS cross-lists four EUR-hedged ESG ETFs on Deutsche Börse

UBS has cross-listed four EUR-hedged ESG ETFs on Deutsche Börse

The ETFs, which include three equity ETFs and one corporate bond ETF, are all based on indices which incorporate an evaluation of environmental, social and governance performance by MSCI.

They also all include in-built euro-currency hedges designed to mitigate the effect of adverse currency movements.

The three equity funds – the UBS MSCI Japan Socially Responsible UCITS (Hedged to EUR) ETF (U1FB GR), the UBS MSCI USA Socially Responsible UCITS (Hedged to EUR) ETF (UET1 GR) and the UBS MSCI ACWI Socially Responsible UCITS (Hedged to EUR) ETF (AW1R GR) – provide exposure to large- and mid-cap companies with outstanding ESG ratings in their respective industry peer groups, while excluding companies whose products have negative social or environmental impacts, such as those involved in nuclear power, tobacco, alcohol, gambling, military weapons, civilian firearms, GMOs and adult entertainment.

Of the remaining companies from the initial universe (namely the parent MSCI index), only those with above-average ESG ratings are eligible for inclusion. The indices aim to capture approximately 25% of the market capitalization in each sector of the parent index, with constituents weighted by float-adjusted market capitalization.

The ETFs have total expense ratios of 50 basis points, 43 bps and 48 bps.

The fixed income fund, the UBS Bloomberg Barclays MSCI US Liquid Corporates Sustainable UCITS (Hedged to EUR) ETF (UETO GR), utilises the same screening process as the equity funds, selecting only those firms with above-average ESG scores. The universe to which this screening is applied is US firms operating in the industrial, utilities and finance sectors. Only bonds with investment-grade ratings are selected for index inclusion. Its TER is 0.25%.

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