UBS lists AUD distributing share class of MSCI Australia ETF on LSE

Sep 27th, 2017 | By | Category: Equities

UBS has listed a distributing Australian dollar share class for its UBS ETF MSCI Australia UCITS ETF (AUAD) on the London Stock Exchange (LSE) . The new trading line complements the existing accumulating and currency-hedged versions already listed on the exchange.

UBS lists AUD distributing share class of MSCI Australia ETF on LSE

UBS has listed an AUD distributing share class of its MSCI Australia ETF on the LSE

The ETF tracks the MSCI Australia Index, offering investors exposure to 70 large- and mid-cap Australian-domiciled equities that represent approximately 85% of the total Australian listed equity market.

The index is heavily weighted towards financials which make up 42.0%. The next largest sectors are materials (17.3%), real estate (8.4%) and consumer staples (7.7%).

The index exhibits a relatively high concentration as the ten largest companies make up 54.6% of the weight. The largest single component weights are made up by Commonwealth Bank of Australia (10.4%), Westpac (8.3%), BHP Billiton (7.0%) and ANZ Banking Group (6.9%).

After a series of standout years between 2003-2007, the index has underperformed the MSCI World Index recently, returning -0.7% per annum for the last three years compared to 6.5% returned by the world benchmark. It has fared better this year, however, matching the world index by returning nearly 14% in the year to 31 August 2017.

The ETF now comes with distributing and accumulating Australian dollar shares classes with total expense ratios of 0.40%, as well as share classes currency hedged to the Swiss franc, the euro, the US dollar and pounds sterling, all with TERs of 0.50%.

The fund was launched in September 2013 and has assets under management of AUD 125 million.

The index is also tracked by iShares MSCI Australia UCITS ETF (LON: SAUS) which is listed in pounds sterling and US dollars on the LSE, Australian dollars on SIX Swiss Exchange, and euros on Borsa Italiana and Xetra.

SAUS was launched in January 2010 and has $978m in AUM with a TER of 0.50%.

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