UBS ETF Bloomberg Barclays US Liquid Corporates UCITS ETF (Hedged to GBP)
| Issuer: UBS |
| Asset Class: Fixed Income |
| TER: 16bps |
| Trading Currency: GBX |
| Pays Income: False |
| Listing Date: 10 Nov 2014 |
| Ticker: UC85 |
| ISIN: LU1048317298 |
This investment vehicle offers targeted exposure to the US investment-grade corporate bond market. It aims to replicate the performance of an index comprising liquid, fixed-rate, taxable corporate bonds from US-domiciled issuers. This provides investors with a diversified portfolio of debt from various sectors of the US economy, making it a potential core holding for a fixed-income allocation. The focus on liquid securities ensures that the underlying assets can be traded efficiently, a crucial feature for maintaining the fund's stability and tracking accuracy. This specific share class is currency-hedged, designed to minimize the impact of exchange rate fluctuations between the underlying assets and the investor's home currency.
The product is suitable for investors seeking stable income and capital preservation with a moderate risk appetite. The investment-grade quality of the bonds signifies issuance by companies with strong credit profiles, reducing default risk compared to high-yield alternatives. It can act as a stabilizing element in a broader portfolio, offering a counterbalance to more volatile equity holdings. The semi-annual distribution schedule makes it appealing for those who require regular income streams. The currency-hedging feature is particularly beneficial for international investors who wish to access the US corporate debt market without assuming the added risk of currency volatility.
In essence, this instrument provides a convenient and cost-effective method for accessing a broad basket of high-quality US corporate bonds. It combines the potential for steady income with the relative safety of investment-grade credit, while also protecting against adverse currency movements, making it a strategic choice for investors aiming to enhance the stability of their portfolios.
