UBS ETF (LU) MSCI EMU Select Factor Mix UCITS ETF (EUR) A-acc
| Issuer: UBS |
| Asset Class: Equity |
| TER: 34bps |
| Trading Currency: GBX |
| Pays Income: False |
| Listing Date: 09 Jul 2018 |
| Ticker: EUFM |
| ISIN: LU1804202403 |
This investment product offers exposure to the European Monetary Union (EMU) equity market through a sophisticated multi-factor strategy. It is designed for investors seeking to capture the performance of large and mid-capitalization stocks from developed countries within the Eurozone. The fund physically replicates its underlying index, meaning it holds the actual constituent stocks. This approach provides direct ownership of the assets and avoids the counterparty risk associated with synthetic replication methods. By focusing on the EMU, the portfolio provides concentrated exposure to one of the world's largest and most integrated economic blocs, home to many globally recognized and industry-leading companies.
The core of the strategy lies in its multi-factor approach. Instead of simply weighting companies by market capitalization, the underlying index selects and weights stocks based on a balanced combination of six proven investment factors: Value, Low Size, Momentum, Quality, Low Volatility, and Yield. This diversified factor exposure aims to deliver a more robust risk-adjusted return profile compared to traditional market-cap-weighted indices. By combining factors that tend to perform well in different market environments, the strategy seeks to smooth out returns and reduce portfolio volatility over the long term. It also incorporates a sustainability screen, excluding companies involved in controversial activities, aligning the investment with environmental, social, and governance (ESG) principles.
This fund is suitable for investors looking to build a core European equity holding with a smart beta tilt. It offers a potential for outperformance over traditional market-cap-weighted Eurozone indices by systematically tilting towards factors historically associated with higher returns. The built-in diversification across multiple factors can provide resilience during various market cycles. Furthermore, the inclusion of ESG criteria caters to socially conscious investors who wish to align their financial goals with their values. As an accumulating share class, all dividends from the underlying companies are automatically reinvested back into the fund, which can enhance long-term capital growth through the power of compounding. This makes it a convenient and efficient tool for strategic, long-term allocation to European equities.
