UBS Asset Management introduces triple launch with S&P 500 climate transition ETF

UBS Asset Management introduces triple launch with S&P 500 climate transition ETF

UBS Asset Management has unveiled ultra-short bond ESG and S&P 500 climate transition ETFs as part of a triple launch.

The Swiss asset manager has also launched a Canadian equity ESG ETF, all of which are listed on the Deutsche Boerse, Six Swiss Exchange and Euronext Milan.

The three ETFs are:

  • UBS ETF MSCI Canada ESG Universal LCS UCITS ETF (CAESG)

  • UBS ETF S&P 500 Climate Transition ESG UCITS ETF (CT5G)

  • UBS ETF EUR Ultra-Short Bond ESG UCITS ETF (SHORT)

SHORT tracks the Solactive EUR Ultra-Short diversified Bond ESG index with a total expense ratio (TER) of 0.20%.

It invests a group of sub-sovereign and agency (SSA) bonds with a minimum amount outstanding of €100 million and maturity of up to six months from issuers in the European Monetary Union.

The SSA bonds – comprising 149 securities – are tilted toward sovereign, supranational and agency issuers performing better in terms of their country risk or ESG rating.

Sovereigns are weighted based on market value while supranational and agency issuers are weighted equally, according to Solactive.

CT5G tracks the S&P 500 Climate Transition Base ESG index, selecting and weighting companies from the flagship US equity index based on the minimum standards of the EU Climate Transition Benchmark.

With a TER of 0.07%, tt currently invests in 369 companies.

It follows the launch of the UBS ETF S&P 500 ESG Elite UCITS ETF (S5EG) in 2021 and the UBS ETF S&P 500 ESG UCITS ETF (5ESG) two years earlier.

The group has also launched a euro-hedged version – the UBS ETF S&P 500 Climate Transition ESG UCITS ETF (hedged to EUR) (CT500) – which is listed on the Deutsche Boerse with a TER of 0.10%.

Finally, CAESG tracks the MSCI Canada ESG Universal Low Carbon Select 5% Issuer Capped index and has a TER of 0.33%.

The ETF will invest in the “largest and highest turnover companies” in the Canadian stock market that are deemed climate-friendly.

It will exclude companies involved in weapons, tobacco, fossil fuel extraction or high carbon dioxide emissions.

Earlier this week, the Swiss asset manager unveiled the UBS ETF MSCI Emerging Markets ex China Socially Responsible UCITS ETF (AW1J) with a TER of 0.20%.

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