UBS MSCI USA Socially Responsible UCITS ETF (Hedged to GBP) A-acc
| Issuer: UBS |
| Asset Class: Equity |
| TER: 22bps |
| Trading Currency: GBX |
| Pays Income: False |
| Listing Date: 13 May 2020 |
| Ticker: SRUG |
| ISIN: IE00BJXT3H40 |
This investment vehicle provides targeted exposure to large and mid-capitalization companies within the United States market. Crucially, it employs a "best-in-class" selection approach based on stringent environmental, social, and governance (ESG) criteria. The underlying portfolio is constructed by screening a parent index of US stocks, selecting only those companies with the highest ESG ratings in their respective sectors. This methodology ensures that investors are gaining access to firms that are leaders in corporate sustainability and responsible business practices.
This fund is specifically designed for investors who wish to align their financial goals with their values, without sacrificing exposure to the world's largest equity market. By excluding companies involved in controversial activities such as controversial weapons, tobacco, and thermal coal, it offers a portfolio that adheres to socially responsible investing (SRI) principles. Furthermore, the strategy incorporates a low carbon tilt by excluding companies with high carbon emissions and fossil fuel reserves, appealing to those concerned about climate-related investment risks. The currency-hedged nature of this particular share class is an added benefit for investors whose home currency is not the US dollar, as it helps to mitigate the impact of exchange rate fluctuations on investment returns.
Within a diversified portfolio, this product can serve as a core holding for US equity allocation, particularly for ESG-conscious investors. It can replace a traditional, non-screened US market tracker, allowing for a seamless integration of sustainability factors into a mainstream investment strategy. Its focus on high-quality, ESG-leading companies may also appeal to investors seeking potential long-term outperformance, based on the theory that sustainable business practices can lead to stronger financial results and reduced risk over time. It provides a straightforward and cost-effective solution for participating in the growth of leading American companies that are actively managing their ESG impact.
