UBS ETF Factor MSCI EMU Prime Value UCITS ETF
| Issuer: UBS |
| Asset Class: Equity |
| TER: 25bps |
| Trading Currency: GBX |
| Pays Income: False |
| Listing Date: 23 Sep 2015 |
| Ticker: UD03 |
| ISIN: LU1215452928 |
This investment vehicle provides targeted exposure to large and mid-capitalization companies within the European Monetary Union (EMU) that exhibit strong value characteristics. The strategy is designed for investors looking to tilt their European equity allocation towards stocks that are considered undervalued relative to their fundamental worth. By systematically selecting securities based on metrics such as book value to price, forward earnings to price, and dividend yield, the fund aims to capture the "value premium," a well-documented market anomaly where undervalued stocks have historically tended to outperform their growth-oriented counterparts over the long term. This disciplined, rules-based approach offers a transparent method for implementing a specific factor-based investment thesis.
Beyond its core value focus, the underlying index incorporates a socially responsible screening process. This methodology excludes companies with significant business involvement in controversial sectors, such as weapons, tobacco, and thermal coal. Furthermore, it filters out firms that are embroiled in severe environmental, social, or governance (ESG) controversies or that fail to meet a minimum ESG rating. This dual approach of combining a value factor strategy with ESG principles results in a portfolio of fundamentally sound and responsibly-managed European companies, appealing to investors who prioritize both financial metrics and sustainable outcomes.
This product is well-suited for investors with a medium to long-term investment horizon who believe in the potential of value investing to generate alpha. It can serve as a core holding for a Eurozone equity strategy or as a tactical satellite position to complement a broader, market-cap-weighted portfolio. By offering access to a curated basket of undervalued stocks that also adhere to responsible investment criteria, the fund provides a modern, sophisticated tool for portfolio construction. It allows for a nuanced expression of a market view, moving beyond simple geographic allocation to a more refined, factor-driven and ESG-aware investment strategy.
