UBS has launched the UBS ETF (LU) Barclays MSCI US Liquid Corporates Sustainable UCITS ETF on the London Stock Exchange (LSE), the first sustainable fixed income ETF to be listed by the company.
The ETF tracks the Barclays MSCI US Liquid Corporate Sustainable Index which targets fixed-rate, investment grade, taxable, USD-denominated securities issued by US corporate issuers with an MSCI ESG (Environmental, Social and Governance) rating of BBB or higher. Securities issued by corporations whose business activities are inconsistent with socially responsible investing criteria are excluded. The index includes publicly issued securities from industrial, utility and financial companies that meet specific maturity, credit quality, liquidity and ESG requirements. To be included, securities must have been issued within the previous two years. The index limits the exposure of each issuer to 5 per cent of the total market value and redistributes the excess market value index-wide on a pro rata basis.
Andrew Walsh, head of UBS ETF Sales UK & Ireland, says: “Demand for ethical investments continues to grow not only in the equities space, but also in fixed income. Our new ETF listing is a reflection of meeting clients' needs for an easy to access US corporate bond product that tracks an index which screens for companies which have strong ESG profiles. This launch adds to our growing suite of ethical ETFs following the recent listing of the UBS ETF MSCI Japan Socially Responsible UCITS ETF."
This new product listing further enhances UBS's commitment to developing ETFs tracking ethical benchmarks, while providing investors access to a very efficient, transparent and liquid underlying index.
