UBS ETF Bloomberg Barclays US Liquid Corporates 1-5 Year UCITS ETF (Hedged to GBP) A-dis

Issuer: UBS

Asset Class: Fixed Income

TER: 19bps

Trading Currency: GBX

Pays Income: False

Listing Date: 05 Dec 2014

Ticker: UC82

ISIN: LU1048315326

This investment product provides targeted exposure to the short-term US corporate bond market. It specifically focuses on investment-grade bonds with remaining maturities between one and five years, offering a way to access the credit market of the world's largest economy. The portfolio is constructed to physically replicate the performance of a recognized benchmark index that captures this specific segment, meaning it directly holds the underlying bonds. This approach ensures transparency and a high degree of correlation with the intended market exposure. This particular share class is also currency-hedged, which aims to mitigate the impact of fluctuations between the US dollar and the British pound on investment returns for UK-based investors.

The fund is designed for investors seeking to add a stable, income-generating component to their portfolios with a focus on high-quality credit. The short-duration nature of the underlying bonds makes it less sensitive to interest rate changes compared to longer-term bond funds, which may appeal to more conservative investors or those with a shorter investment horizon. It can serve as a core holding for those looking to diversify away from equities or government debt while still maintaining exposure to a developed market. The currency-hedged feature makes it particularly suitable for investors who wish to gain exposure to US corporate debt without taking on the associated currency risk. Furthermore, the semi-annual distribution of income can be an attractive feature for those requiring a regular cash flow from their investments.