UBS ETF MSCI Emerging Markets UCITS ETF (USD) A-dis
| Issuer: UBS |
| Asset Class: Equity |
| TER: 18bps |
| Trading Currency: USD |
| Pays Income: False |
| Listing Date: 28 Nov 2013 |
| Ticker: UB30 |
| ISIN: LU0480132876 |
This fund provides a strategic gateway to the growth potential inherent in emerging economies. By investing in a broad portfolio of large and mid-sized companies across numerous developing countries, it aims to capture the economic expansion driven by favorable demographics, a burgeoning middle class, and rapid industrialization. These markets, while more volatile than their developed counterparts, can offer significant long-term growth prospects and valuable diversification benefits for a well-rounded global portfolio. The fund serves as a core building block for investors seeking to participate in the dynamic and evolving landscape of the world's next generation of economic powerhouses.
The investment strategy is straightforward and transparent, designed to replicate the performance of a widely recognized emerging markets benchmark index. This passive approach ensures comprehensive exposure to the asset class by following a market-capitalization-weighted methodology, which includes prominent companies from sectors like technology, financials, and consumer discretionary in countries such as China, Taiwan, India, and Brazil. By utilizing a full physical replication method, the fund holds the actual underlying stocks of the index, providing investors with direct ownership and minimizing counterparty risk associated with synthetic structures. The distributing share class structure also allows for regular income payouts from the dividends collected from the underlying holdings.
An allocation to this instrument is suitable for investors with a long-term horizon and a higher tolerance for risk. The inherent risks include heightened market volatility, currency fluctuations, and potential political or regulatory instability within the constituent countries. However, for those looking to enhance their portfolio's growth potential and diversify away from developed markets, this fund offers an efficient, low-cost, and diversified solution to gain comprehensive exposure to the compelling growth story of emerging markets.
