UBS ETF MSCI World UCITS ETF (USD) A-dis

Issuer: UBS

Asset Class: Equity

TER: 30bps

Trading Currency: GBX

Pays Income: False

Listing Date: 10 Jul 2013

Ticker: UC55

ISIN: LU0340285161

This investment product offers comprehensive exposure to a broad basket of large and mid-capitalisation stocks across the world's developed countries. It is designed to function as a core holding within a diversified portfolio, providing a straightforward, single-transaction method to capture the performance of the global developed equity market. The underlying index is market-capitalisation weighted, which means that larger, more established companies have a more significant influence on its performance. This methodology ensures a reflection of the global economy's most substantial publicly traded firms, encompassing a wide range of sectors including Information Technology, Financials, Health Care, and Consumer Discretionary.

This fund is particularly suitable for investors with a long-term investment horizon who are seeking capital appreciation and are comfortable with the inherent risks associated with equity markets. By investing across numerous companies and countries, the fund inherently mitigates the concentration risk that can arise from investing in individual stocks or focusing on a single country. The fund's physical replication strategy means it directly owns the shares of the companies within the index. This approach provides a high degree of transparency and can reduce the counterparty risk that might be present in synthetically replicated funds.

In portfolio construction, this product can serve as the central equity allocation. Around this core, an investor could strategically add satellite positions in specific regions, sectors, or emerging themes to align with particular market views or to enhance potential returns. It presents a cost-effective and liquid vehicle for gaining broad global market exposure. As a distributing share class, it pays out dividends received from the underlying companies to investors, which can provide a regular income stream. This feature may be especially appealing to those who prioritise periodic cash flow from their investment portfolio.