UBS MSCI USA Socially Responsible UCITS ETF (USD) A-dis
| Issuer: UBS |
| Asset Class: Equity |
| TER: 19bps |
| Trading Currency: GBX |
| Pays Income: False |
| Listing Date: 13 May 2020 |
| Ticker: SRIU |
| ISIN: IE00BJXT3B87 |
This fund offers a targeted approach to socially responsible investing within the US equity market. It is designed to provide exposure to large and mid-capitalization companies in the United States that demonstrate strong Environmental, Social, and Governance (ESG) characteristics. The underlying index employs a rigorous screening methodology, starting with a broad US market benchmark and then excluding companies involved in controversial business activities such as civilian firearms, controversial weapons, tobacco, thermal coal, and oil sands extraction. This negative screening ensures the portfolio avoids industries that many ethical investors seek to omit.
Following the exclusions, the methodology selects the top-performing companies in each sector based on their ESG ratings, ensuring a best-in-class approach. This results in a portfolio composed of firms that are leaders in sustainability and corporate responsibility relative to their peers. A capping mechanism is applied to limit the weight of any single company to 5%, which enhances diversification and reduces concentration risk. By focusing on these ESG leaders, the fund aims to provide returns aligned with the broader US market while also promoting positive environmental and social outcomes. The strategy is suitable for investors looking to integrate their values into their core US equity holdings.
The fund utilizes a physical replication strategy, meaning it directly owns the underlying securities of the index, which provides a high degree of transparency for investors. As a distributing share class, it aims to pay out any income generated from the portfolio's holdings on a semi-annual basis, which may appeal to those seeking a regular income stream. This product can serve as a core component of a diversified portfolio for individuals and institutions aiming to achieve both financial returns and a positive societal impact through their investments.
