UBS ETF MSCI Canada 100% Hedged to GBP UCITS ETF (Hedged to GBP) A-dis
| Issuer: UBS |
| Asset Class: Equity |
| TER: 36bps |
| Trading Currency: GBX |
| Pays Income: False |
| Listing Date: 06 Mar 2015 |
| Ticker: UC87 |
| ISIN: LU1130156323 |
This investment vehicle provides targeted exposure to the Canadian equity market, one of the world's largest developed economies. The Canadian market is characterized by its significant weight in the financial, energy, and materials sectors, reflecting the country's vast natural resources and robust banking system. Companies within these sectors are often global leaders, offering a blend of stability and cyclical growth potential. An allocation to Canadian equities can serve as a valuable diversifier within a global portfolio, offering exposure to economic drivers that are distinct from those of the US, Europe, or Asia, despite strong trade ties with its southern neighbor. The fund aims to replicate the performance of a benchmark comprising the leading large and mid-capitalization companies listed in Canada.
By employing a physical replication strategy, the fund holds the actual shares of the companies in the underlying index, providing direct and transparent ownership of the assets. A key feature of this specific share class is its currency hedging mechanism. It is designed for investors who want to capture the performance of Canadian stocks without taking on the associated currency risk between the Canadian dollar and the British pound. The hedging strategy aims to neutralize the impact of exchange rate fluctuations, meaning the investor's return is primarily driven by the capital appreciation and dividends of the Canadian companies themselves, rather than the movements in the foreign exchange market. This can be particularly attractive during periods of currency volatility or for investors seeking to maintain a more predictable return profile.
This instrument is well-suited for a variety of strategic asset allocation goals. It can act as a core holding for investors seeking dedicated, long-term exposure to the Canadian economy or as a tactical satellite holding to complement a broader global or North American equity portfolio. Furthermore, as an accumulating share class, all dividends paid by the underlying companies are automatically reinvested back into the fund. This process enhances the potential for long-term capital growth through the power of compounding and offers greater tax efficiency for investors who do not require a regular income stream.
