UBS ETF (IE) Factor MSCI USA Quality UCITS ETF
| Issuer: UBS |
| Asset Class: Equity |
| TER: 25bps |
| Trading Currency: GBX |
| Pays Income: False |
| Listing Date: 23 Sep 2015 |
| Ticker: UC99 |
| ISIN: IE00BX7RRJ27 |
This fund offers a strategic approach to the US equity market by concentrating on two key investment factors: quality and high dividend yield. It is designed for investors seeking exposure to established American companies that demonstrate strong financial health and a commitment to returning value to shareholders. The core of the strategy involves selecting firms from the broader US market that exhibit robust fundamentals, such as high return on equity, stable year-over-year earnings growth, and low financial leverage. This focus on quality aims to identify resilient businesses capable of navigating various market cycles, potentially offering a degree of stability to a portfolio.
In addition to the quality screen, the fund emphasizes companies with a strong and sustainable dividend-paying record. This dual-factor approach seeks to provide a combination of long-term capital appreciation and a consistent income stream. Furthermore, the investment process incorporates an important ESG (Environmental, Social, and Governance) layer. The underlying index screens out companies with significant business involvement in controversial sectors, including tobacco, controversial weapons, and thermal coal. This exclusionary process refines the portfolio to align with the principles of socially responsible investing, appealing to those who wish to integrate their values with their financial goals.
The resulting portfolio provides a compelling alternative to traditional market-cap-weighted US equity exposure. It may appeal to long-term investors looking for a core holding with a potentially more defensive risk profile. By combining the stability of quality companies with the income potential of high-dividend payers and an ethical ESG overlay, the fund aims to deliver risk-adjusted returns throughout different economic conditions. It is particularly suitable for those prioritizing capital preservation and income generation alongside growth, all while adhering to responsible investment standards.
