UBS ETF MSCI EMU UCITS ETF (Hedged to GBP) A-acc
| Issuer: UBS |
| Asset Class: Equity |
| TER: 15bps |
| Trading Currency: GBX |
| Pays Income: False |
| Listing Date: 03 Aug 2017 |
| Ticker: UB0E |
| ISIN: LU1169820138 |
This fund offers core exposure to the Eurozone equity market, specifically targeting large and mid-capitalization companies across the 10 developed market countries within the European Economic and Monetary Union (EMU). It is designed to closely track the performance of the MSCI EMU Index. The investment employs a full physical replication strategy, which means it directly owns the underlying stocks that constitute the index in their respective proportions. This method provides investors with a high degree of transparency and a direct stake in the region's most prominent companies, making it a straightforward choice for pure-play exposure to European equities.
A significant feature of this particular share class is its currency-hedging mechanism. The strategy is engineered to mitigate the impact of exchange rate fluctuations between the Euro and the investor's home currency, thereby isolating returns to the performance of the underlying Eurozone stocks. This is particularly advantageous for investors who wish to avoid the additional layer of volatility associated with currency risk. By neutralizing currency movements, the fund allows for a more direct and predictable investment experience focused solely on the economic health and corporate profitability within the Eurozone.
As a foundational portfolio component, this investment provides extensive diversification across various sectors and countries, including major economies like Germany and France. The accumulating share class structure ensures that all dividends paid by the constituent companies are automatically reinvested, harnessing the power of compounding to potentially enhance long-term growth. This structure, combined with a competitive cost, makes it an efficient and effective solution for building a strategic, long-term allocation to European equities within a globally diversified portfolio.
