UBS ETF (IE) Factor MSCI USA Prime Value UCITS ETF (Hedged to GBP)

Issuer: UBS

Asset Class: Equity

TER: 28bps

Trading Currency: GBX

Pays Income: False

Listing Date: 03 Feb 2016

Ticker: UPVL

ISIN: IE00BXDZNH00

This investment product offers targeted exposure to the U.S. equity market, specifically focusing on companies that exhibit strong value characteristics. The strategy is based on an index that selects securities from a broad U.S. market benchmark based on three fundamental value metrics: book value to price, 12-month forward earnings to price, and dividend yield. This systematic approach aims to capture the potential long-term outperformance associated with value investing by identifying stocks that may be trading below their intrinsic worth, offering a disciplined way to access this well-established investment factor.

In addition to its value-oriented core, the fund incorporates a crucial socially responsible investing (SRI) filter. This methodology excludes companies involved in controversial activities such as certain weapons, tobacco, and thermal coal, as well as those that fail to meet specific environmental, social, and governance (ESG) standards. This dual-focus on both robust value fundamentals and ethical principles makes the investment suitable for those looking to align their portfolios with their personal values without compromising on a core factor-based investment thesis.

This particular share class is specifically designed for investors looking to minimize currency risk. It incorporates a currency hedge to mitigate the impact of fluctuations between the U.S. dollar and the British pound, thereby isolating the portfolio's returns primarily to the performance of the underlying U.S. value stocks. The fund employs a full physical replication method, meaning it holds the actual securities of the index, which ensures high transparency and accurate tracking of the benchmark.