UBS ETF Bloomberg Barclays MSCI Euro Area Liquid Corporates Sustainable UCITS ETF

Issuer: UBS

Asset Class: Fixed Income

TER: 13bps

Trading Currency: GBX

Pays Income: False

Listing Date: 31 Jan 2017

Ticker: CBSE

ISIN: LU1484799769

This investment vehicle provides targeted exposure to the investment-grade, fixed-rate corporate bond market within the Eurozone. The strategy is designed to track a specific benchmark index composed of euro-denominated bonds from issuers with high environmental, social, and governance (ESG) ratings. It focuses on liquid securities, ensuring that the underlying assets can be traded efficiently. The fund is constructed using a physical replication method, meaning it directly holds the constituent bonds of the index, offering transparency and a direct link to the performance of the underlying market.

A key feature of this product is its deep integration of ESG criteria. The underlying index applies a robust sustainability filter, excluding companies involved in controversial business activities such as weapons, tobacco, thermal coal, and oil sands. It then selects and weights issuers based on their MSCI ESG ratings, favoring those that demonstrate strong sustainability practices. This approach caters to investors who wish to align their fixed-income portfolios with sustainability objectives without sacrificing core exposure to the European corporate debt market. It offers the potential for stable income through regular distributions while adhering to strict responsible investing principles.

This fund is suitable for investors seeking to diversify their portfolios with high-quality European fixed-income assets. It can serve as a core holding for those who want exposure to investment-grade corporate credit from developed European economies. The built-in sustainability screen makes it particularly attractive for ESG-conscious investors looking for a socially responsible fixed-income solution. Given its focus on quality, it appeals to those with a moderate risk appetite who are looking for a source of income and capital preservation, making it a relevant option for building a resilient and sustainable portfolio.