UBS ETF MSCI EMU Value UCITS ETF (EUR) A-dis
| Issuer: UBS |
| Asset Class: Equity |
| TER: 25bps |
| Trading Currency: GBX |
| Pays Income: False |
| Listing Date: 28 Jun 2012 |
| Ticker: UB17 |
| ISIN: LU0446734369 |
This investment vehicle offers targeted exposure to the value factor within the Eurozone equity market. It is designed to track an index composed of large and mid-capitalization companies across developed European Monetary Union (EMU) countries. The selection process focuses on identifying stocks that exhibit strong value characteristics, such as lower price-to-book ratios, lower forward price-to-earnings ratios, and higher dividend yields compared to the broader market. By concentrating on these metrics, the portfolio aims to capture the performance of securities that appear to be trading at a discount to their intrinsic worth.
Investing in this product can be a strategic move for those seeking to capitalize on the potential long-term outperformance of value stocks, a well-documented market anomaly. This approach may appeal to investors who believe that the market periodically undervalues solid companies, creating opportunities for appreciation as their true worth is recognized. It offers a systematic, rules-based way to diversify a core European equity holding by tilting it towards the value style. This could be particularly relevant in economic environments where cyclical sectors and fundamentally sound but overlooked companies are poised for a comeback.
This fund serves as a tactical or strategic satellite holding to complement a core, market-cap-weighted European or global equity portfolio. It allows investors to express a specific view on the value factor's prospects within the developed economies of the Eurozone. Given its focus, the fund may experience periods of performance that differ significantly from the broader market. It is suitable for investors with a medium to long-term horizon who understand the cyclical nature of investment styles and are looking for a cost-effective tool to gain precise exposure to undervalued European companies.
