UBS ETF (IE) Factor MSCI USA Quality UCITS ETF (Hedged to GBP)
| Issuer: UBS |
| Asset Class: Equity |
| TER: 28bps |
| Trading Currency: GBX |
| Pays Income: False |
| Listing Date: 03 Feb 2016 |
| Ticker: UQLT |
| ISIN: IE00BXDZNK39 |
This fund offers targeted exposure to the U.S. large and mid-cap equity market by focusing on companies that exhibit strong quality characteristics. The investment strategy is built upon a rules-based methodology that selects stocks based on three key fundamental variables: high return on equity, stable year-over-year earnings growth, and low financial leverage. This approach aims to identify well-established companies with sustainable business models and robust financial health, potentially offering a degree of resilience compared to broader market indices.
In addition to its quality focus, the portfolio incorporates a socially responsible screening process. It systematically excludes companies with significant business involvement in controversial sectors such as tobacco, controversial weapons, and thermal coal. Furthermore, companies that are found to be in violation of the United Nations Global Compact principles are also removed. This dual-layered approach of combining a quality factor tilt with an ethical overlay results in a portfolio of high-caliber, socially conscious U.S. companies. This particular share class is also currency-hedged, which seeks to minimize the impact of exchange rate fluctuations between the underlying U.S. dollar-denominated assets and the British pound.
This product is designed for investors seeking a core holding in U.S. equities but who wish to refine their exposure by emphasizing financially strong companies while adhering to responsible investment criteria. The strategy may appeal to those looking for potentially enhanced risk-adjusted returns over the long term and a more defensive posture during periods of economic uncertainty. The currency hedging feature makes it particularly suitable for U.K.-based investors looking to mitigate foreign exchange risk from their U.S. equity allocation.
