UBS Asset Management (UBS AM) has announced the launch of two new UCITS ETFs which provide exposure to the Nasdaq-100 Notional and the Nasdaq-100 Sustainable ESG Select Notional indexes.
The UBS ETF (IE) Nasdaq-100 UCITS ETF passively tracks the Nasdaq-100 Notional Index, which comprises of the 100 largest US and international non-financial companies listed on the Nasdaq Stock Market, based on market capitalisation. The index includes firms from diverse sectors like computer hardware and software, telecommunications, retail / wholesale trade, and biotechnology. The fund is aligned with Art. 6 under SFDR and is physically replicated.
The UBS ETF (IE) Nasdaq-100 ESG Enhanced UCITS ETF passively tracks the Nasdaq-100 Sustainable ESG Select Notional Index which is derived from the Nasdaq-100 Notional Index. Companies are evaluated and weighted based on their business activities, controversies, and ESG Risk Ratings. Companies that are identified by Morningstar Sustainalytics as having an ESG Risk Rating Score of 40 or higher, or as being involved in specific business activities, are not eligible for inclusion in the index. The ESG Risk Rating Score indicates the company’s total unmanaged risk and is categorized across five risk levels: negligible (0-10); low (10-20); medium (20-30); high (30-40) and severe (40+).
Furthermore, the index’s ESG Risk Score must be 10 per cent lower than the parent index at each semi-annual review. A lower index-weighted ESG Risk Score signifies reduced ESG risk.
The fund is physically replicated and aligned with Art. 8 under SFDR.
Clemens Reuter, Head ETF & Index Fund Client Coverage, UBS Asset Management says: “We are delighted to launch our first ever Nasdaq-100 ETFs, and offer our clients the choice between the iconic index, and the sustainable version of the same benchmark.“
The UBS ETF (IE) Nasdaq-100 UCITS ETF will be listed on the SIX Swiss Exchange, XETRA, and London Stock Exchange, while the UBS ETF (IE) Nasdaq-100 ESG Enhanced UCITS ETF will be listed on the SIX Swiss Exchange and XETRA.
