UBS ETF (LU) MSCI Emerging Markets Socially Responsible UCITS ETF

Issuer: UBS

Asset Class: Equity

TER: 20bps

Trading Currency: GBX

Pays Income: False

Listing Date: 15 Oct 2025

Ticker: EMSR

ISIN: LU1048313974

This fund is designed to provide investors with exposure to emerging market equities that meet stringent socially responsible investment (SRI) criteria. It achieves this by tracking an index that screens companies from the broader MSCI Emerging Markets universe based on their environmental, social, and governance (ESG) performance. The methodology systematically excludes firms with significant business involvement in controversial sectors such as weapons, tobacco, thermal coal, and oil sands. This strategy allows investors to tap into the growth potential of developing economies while ensuring their capital is aligned with ethical and sustainable principles, all within a transparent, rules-based investment vehicle.

The underlying benchmark utilizes a 'best-in-class' selection process, favoring companies that demonstrate strong ESG ratings relative to their industry peers. Beyond the comprehensive negative screens, the index incorporates a specific low-carbon objective, aiming to significantly reduce the portfolio's carbon footprint compared to the parent index. To enhance diversification and limit concentration risk, a 5% cap is applied to each individual company weighting. This dual focus on high ESG standards and carbon reduction makes the product a compelling option for investors who wish to address both broad ethical considerations and climate-related risks within their emerging markets allocation.

By holding this fund, investors gain access to a diversified portfolio of leading companies across various emerging economies, including key players in technology, finance, and consumer sectors that pass the rigorous sustainability filter. The integration of ESG factors may contribute to a more resilient long-term portfolio by potentially avoiding companies with poor governance structures or those exposed to unmanaged environmental and social risks. It serves as a core holding for those seeking long-term capital appreciation from emerging markets while actively supporting responsible corporate behavior and a more sustainable global economy.