UBS ETF Bloomberg Barclays MSCI US Liquid Corporates Sustainable UCITS ETF (Hedged to GBP)
| Issuer: UBS |
| Asset Class: Fixed Income |
| TER: 16bps |
| Trading Currency: GBX |
| Pays Income: False |
| Listing Date: 28 Sep 2018 |
| Ticker: BSUS |
| ISIN: LU1215461598 |
This fund offers targeted exposure to the US investment-grade corporate bond market, with a distinct focus on sustainability. It is designed to track a benchmark index composed of fixed-rate, US dollar-denominated corporate bonds that meet specific liquidity requirements. What sets this strategy apart is its integration of Environmental, Social, and Governance (ESG) criteria. The underlying index selects bonds from issuers with high ESG ratings, as determined by MSCI, while systematically excluding companies involved in controversial business activities such as weapons manufacturing, tobacco, and thermal coal. This approach allows investors to gain core fixed-income exposure while aligning their portfolio with principles of sustainable and responsible investing.
The product is particularly well-suited for investors seeking a stable source of income from high-quality debt instruments, but who also wish to incorporate an ethical dimension into their investment choices. This specific share class is hedged, making it an attractive option for investors looking to neutralize the impact of currency fluctuations between the US dollar and their local currency. It can function as a foundational component within a diversified fixed-income allocation, providing a balance of credit quality and responsible investment principles. The distributing nature of the fund, with semi-annual payouts, further enhances its appeal for those prioritizing regular income generation.
By investing in this fund, individuals gain a low-cost, liquid, and transparent vehicle for accessing the US corporate bond market. The physical replication method means the fund holds the actual bonds in the index, offering direct exposure to the underlying assets. The built-in ESG screening process not only caters to value-driven investors but may also help mitigate long-term risks associated with companies that have poor sustainability profiles. It represents a modern approach to fixed-income investing, where financial returns are pursued in conjunction with positive societal and environmental outcomes.
