UBS Asset Management announces that it has listed a new ETF on London Stock Exchange offering access to Eurozone corporate bonds which have been screened for sustainability.
The UBS ETF Barclays MSCI Euro Area Liquid Corporates Sustainable ETF aims to track the price and yield performance of the Barclays MSCI Euro Area Liquid Corporates Sustainable Index.
The ETF invests in bonds of the underlying index and provides exposure to investment grade, EUR denominated securities issued by Eurozone corporate issuers operating in financial, industrial and utility sectors.
For inclusion in the index issuers must have an MSCI ESG rating of BBB or higher. Securities issued by corporations whose business activities are inconsistent with socially responsible investing criteria are excluded. This includes alcohol, tobacco, gambling, civilian firearms and military weapons.
Andrew Walsh, Head of UBS ETFs UK & Ireland, says: “UBS ETFs recently passed USD1 billion in SRI assets under management and is able to offer investors the possibility to build a sustainable worldwide portfolio in an efficient way. A recent study by UBS into SRI investing has shown that there is no negative effect on risk and return compared to portfolios that were not screened for sustainability criteria.”