UBS ETF - J.P. MORGAN USD EM IG ESG DIVERSIFIED BOND UCITS ETF (USD) A-ACC
| Issuer: UBS |
| Asset Class: Fixed Income |
| TER: 40bps |
| Trading Currency: GBX |
| Pays Income: False |
| Listing Date: 08 Aug 2019 |
| Ticker: EMIG |
| ISIN: LU1974695790 |
This investment fund offers targeted exposure to the US dollar-denominated, investment-grade bond market of emerging countries. The strategy is designed for investors seeking an enhanced income stream by focusing on bonds from sovereign, quasi-sovereign, and corporate issuers that exhibit attractive dividend yields. By concentrating on investment-grade securities, the fund aims to balance the potential for higher income, which is characteristic of emerging markets, with a degree of credit quality, thereby mitigating some of the risks typically associated with this asset class.
A key feature of the underlying strategy is the integration of Environmental, Social, and Governance (ESG) criteria. The fund tracks a benchmark that applies specific ESG screens, excluding issuers involved in controversial business activities such as weapons, tobacco, and thermal coal, as well as those that do not meet certain sustainability standards. This dual-mandate approach of pursuing high dividend income while adhering to responsible investing principles provides a composite solution for those looking to align their financial objectives with their values. The portfolio's construction is rules-based, ensuring a transparent and systematic selection of securities.
This product may be suitable for diversifying a fixed-income portfolio, offering access to the growth potential and yield advantages of emerging economies while maintaining a focus on higher-quality debt. It can serve as a strategic allocation for investors aiming to generate regular income, given its semi-annual distribution policy. The physical replication method ensures direct ownership of the underlying bonds, providing transparency and minimizing counterparty risk. The combination of income focus, ESG screening, and broad emerging market diversification makes it a compelling option for a modern fixed-income portfolio.
