UBS has launched the S&P USA Dividend Aristocrats ESG Elite UCITS ETF, which tracks the S&P ESG Elite High Yield Dividend Aristocrats TRN Index designed to replicate the performance of the dividend yield-weighted index for US companies that have followed a managed-dividends policy of consistently increasing dividends every year for at least 20 years.
In addition, UBS writes that the index is constructed to meet specific ESG criteria. It screens out ESG laggards (the worst 25 per cent in terms of S&P DJI ESG Score) and implements a set of norms-based exclusions such as UN GC classifications and a comprehensive set of business activities-based exclusions such as conventional and unconventional oil and gas, thermal coal, controversial weapons, tobacco, etc.
UBS writes that thanks to its comprehensive set of exclusions, the new ETF enables investors to get an exposure with a considerably improved ESG profile as compared to the parent benchmark.
The new ETF is being listed across key European exchanges including Xetra, Borsa Italiana, London Stock Exchange and SIX Swiss Exchange. The fund is classified as an Article 8 product under the European Union’s Sustainable Finance Disclosure Regulation (SFDR).