Global investment powerhouse UBS Asset Management is debuting a sustainable global exchange-traded fund, aimed at securing environmentally and socially responsible returns for investors.
UBS Asset Management has announced the launch of a new sustainable exchange-traded fund (ETF), the IE MSCI World Small Cap Socially Responsible UCITS ETF. The ETF, with the ISIN IE00BKSCBX74, is designed to be compliant with sustainable finance regulations in the European Union and aims to track companies with the strongest sustainability profiles from the MSCI World Small Cap index.
The UBS ETF, which is a UCITS ETF, employs a best-in-class approach, selecting the stocks with the highest Environmental, Social, and Governance (ESG) rating in each sector to cover 25% of the market capitalization of the MSCI World Small Cap. This approach achieves the ETF's goal of investing in global small-cap stocks while prioritizing companies with the highest ESG ratings.
The management fee for the UBS ETF is 0.23% per year, making it a relatively low-cost investment option. The ETF's management fee includes the cost of managing the fund, as well as the cost of maintaining its sustainability focus.
The UBS ETF is compliant with the criteria of Article 8 of the Sustainable Finance Disclosure Regulation of the European Union (SFDR). This means that the ETF is designed to promote environmental or social characteristics, and does not cause significant harm to any of those characteristics.
Sectors such as tobacco, controversial weapons, coal, oil-fired power plants, oil, and gas are excluded from the UBS ETF. This exclusionary approach ensures that the ETF is aligned with sustainable investment principles.
Users who have subscribed to the UBS ETF have received a confirmation email. If users do not receive the confirmation email, they are advised to check their spam folder. The confirmation email contains a button to activate the subscription.
Investors interested in sustainable investing and global small-cap stocks may find the UBS ETF an attractive option. With its low management fee, best-in-class approach, and compliance with sustainable finance regulations, the UBS ETF offers a unique investment opportunity.
