UBS ETF MSCI USA Select Factor Mix UCITS ETF

Issuer: UBS

Asset Class: Equity

TER: 25bps

Trading Currency: GBX

Pays Income: False

Listing Date: 17 May 2017

Ticker: USFM

ISIN: IE00BDGV0308

This investment product offers a strategic approach to the US equity market by tracking a multi-factor index. Instead of following a conventional market-capitalization-weighted benchmark, it systematically selects and weights securities from the large- and mid-cap US stock universe based on four distinct and historically proven investment factors: Value, Quality, Momentum, and Low Volatility. This methodology is designed to capture potential excess returns that these factors have historically generated over the long term, providing a more dynamic alternative to traditional passive investments.

The combined factor approach creates a diversified portfolio aimed at enhancing risk-adjusted returns. The Value component targets stocks that appear underpriced relative to their intrinsic worth. The Quality factor focuses on financially sound companies with stable earnings and low debt. Momentum seeks to include stocks that have demonstrated strong recent performance trends, while the Low Volatility screen aims to reduce portfolio fluctuations by favoring less volatile stocks. By integrating these four factors, the strategy avoids over-reliance on a single market driver, which can be beneficial across different market cycles.

This fund is suitable for investors seeking a core holding that provides sophisticated, rules-based exposure to US equities. It offers a potential for outperformance compared to broad market indices while maintaining the benefits of transparency and cost-efficiency. The diversified factor exposure may lead to a smoother return profile than single-factor strategies, making it an appealing option for those looking to build a resilient, long-term portfolio based on well-researched academic principles of factor investing.