UBS ETF (LU) Bloomberg MSCI US Liquid Corporates Sustainable UCITS ETF A-dis

Issuer: UBS

Asset Class: Fixed Income

TER: 13bps

Trading Currency: USD

Pays Income: False

Listing Date: 01 Sep 2015

Ticker: UC97

ISIN: LU1215461085

This fund offers targeted exposure to the US dollar-denominated, investment-grade corporate bond market. The investment strategy is passive, aiming to replicate the performance of its underlying benchmark index by investing in fixed-rate bonds that meet specific liquidity criteria. This provides a transparent and rules-based approach to investing in a core segment of the US fixed-income landscape. The portfolio is composed of securities from a diverse range of issuers and maturities, ensuring broad exposure to the credit risk and return profile of established American corporations.

A key feature of this investment vehicle is its integration of Environmental, Social, and Governance (ESG) principles. The underlying index applies a sustainability screen, excluding companies involved in controversial business activities such as certain weapons, tobacco, and thermal coal. Furthermore, it employs an ESG rating methodology to select companies that demonstrate strong sustainability practices relative to their industry peers. This 'best-in-class' approach ensures the portfolio is tilted towards companies with superior ESG profiles, appealing to investors who wish to align their fixed-income allocation with sustainability goals.

For investors, this fund can serve as a core holding within a diversified fixed-income portfolio. It combines the potential for stable income generation, characteristic of investment-grade corporate bonds, with the benefits of a sustainability-focused investment approach. Its focus on liquid securities enhances tradability, making it suitable for those looking to gain efficient exposure to the US corporate bond market while adhering to responsible investment principles.