UBS ETF (IE) S&P 500 ESG Elite UCITS ETF (USD) A-acc
| Issuer: UBS |
| Asset Class: Equity |
| TER: 15bps |
| Trading Currency: GBX |
| Pays Income: False |
| Listing Date: 12 Mar 2021 |
| Ticker: S5EE |
| ISIN: IE00BLSN7P11 |
This investment vehicle provides targeted exposure to large-cap US companies that demonstrate leading environmental, social, and governance (ESG) characteristics. The strategy is designed to replicate the performance of the S&P 500 ESG Elite Index, which applies a rigorous set of values-based exclusions and performance-based screens to the traditional S&P 500 universe. The index methodology begins by excluding companies involved in controversial business activities, such as tobacco, controversial weapons, and thermal coal, as well as those failing to comply with the principles of the United Nations Global Compact. This initial filtering ensures a baseline alignment with widely accepted responsible investment principles.
Following the exclusions, the "Elite" screening process selects only the top 25% of companies in each GICS industry group based on their S&P Dow Jones Indices ESG Score. This "best-in-class" approach ensures that the portfolio is concentrated in firms that are leaders in managing their ESG risks and opportunities relative to their peers. Furthermore, the index aims for a 25% reduction in carbon intensity compared to the parent S&P 500, adding a specific climate-conscious tilt to the portfolio. The fund utilizes a physical replication strategy, meaning it holds the underlying stocks of the index directly.
This fund is suitable for investors seeking to integrate a high-conviction ESG approach into the core of their US equity allocation. By focusing on the highest-scoring ESG companies within the S&P 500, it offers a way to invest in well-established American corporations while actively supporting sustainability leaders and reducing exposure to certain ethical and environmental risks. The accumulating share class structure automatically reinvests any dividends received from the underlying holdings, which compounds returns over time and is ideal for those with a long-term growth objective.
