Three new smart beta ETFs issued by UBS Global Asset Management has launched three new smart beta exchange traded funds (ETFs) on Xetra and Börse Frankfurt.
The new UBS factor ETFs enable investors to participate in the performance of companies from the US, which are selected based on one of the following criteria: low volatility, quality and substance. All three UBS ETFs also provide a hedge against EUR currency risk.
The UBS (Irl) ETF plc – Factor MSCI USA Quality UCITS ETF (hedged to EUR) A-acc is based on the MSCI USA Prime Quality 100% hedged to EUR Index, which consists of stocks selected based on fundamental data such as dividend yields, low debt ratio and stable earnings power.
The UBS (Irl) ETF plc – Factor MSCI USA Prime Value UCITS ETF (hedged to EUR) A-acc is based on the MSCI USA Prime Value 100% hedged to EUR Index, which includes companies with a relatively low valuation, taking into account indicators such as the price-to-earnings, price-to-book, price-to-sales as well as price-to-cash flow ratios.
The UBS (Irl) ETF plc – Factor MSCI USA Low Volatility UCITS ETF (hedged to EUR) A-acc is based on the MSCI USA Select Dynamic 50% Risk Weighted 100% to EUR Index, which aims to track up to 50 per cent of the aggregate volatility of the companies in the parent MSCI USA Index. The weighting of the companies in the reference index is reduced as volatility rises, giving investors access to US equities with low price volatility.