UBS ETF (LU) MSCI EMU Socially Responsible UCITS ETF (hedged to GBP) A-dis

Issuer: UBS

Asset Class: Equity

TER: 23bps

Trading Currency: GBX

Pays Income: False

Listing Date: 06 May 2020

Ticker: EUSR

ISIN: LU1280300853

This fund offers targeted exposure to the European Monetary Union (EMU) equity market through a socially responsible lens. It is designed for investors who wish to align their portfolios with strong environmental, social, and governance (ESG) principles without sacrificing access to the region's core large and mid-cap companies. The investment strategy physically replicates an index that systematically applies a series of ethical and sustainability-focused screens. This methodology results in a portfolio that emphasizes companies with superior ESG ratings and a lower carbon footprint compared to the broader market.

The underlying index employs a multi-faceted screening process. Initially, it excludes companies involved in controversial business activities such as weapons, tobacco, thermal coal, and oil sands extraction. Following these values-based exclusions, the index selects the top-performing companies based on their ESG scores, ensuring that the final portfolio represents the leaders in sustainable practices within each sector. A further low-carbon filter is applied to reduce exposure to carbon-intensive industries, contributing to the decarbonization of an investor's portfolio. This rigorous approach provides a robust framework for gaining exposure to the most sustainable firms in the Eurozone.

This particular share class is hedged, meaning it aims to mitigate the impact of currency fluctuations between its base currency and the pound sterling. This feature makes it particularly suitable for UK-based investors seeking to invest in European equities while minimizing foreign exchange risk. The fund offers a compelling solution for those looking to build a core European equity position that is consistent with long-term sustainability objectives and responsible investment values.