UBS ETF Sustainable Development Bank Bonds UCITS ETF (USD) A-dist

Issuer: UBS

Asset Class: Fixed Income

TER: 15bps

Trading Currency: GBX

Pays Income: False

Listing Date: 28 Apr 2022

Ticker: CBS5

ISIN: LU2408467723

This financial instrument offers targeted exposure to the short-term US corporate bond market, with a strong emphasis on sustainability. It is designed for investors looking to generate income and preserve capital while adhering to environmental, social, and governance (ESG) principles. The portfolio consists of US dollar-denominated, fixed-rate, investment-grade corporate bonds with a remaining maturity of between one and five years. This specific maturity range helps to mitigate interest rate risk, making it a potentially more stable option during periods of rate volatility compared to funds holding longer-dated bonds.

The underlying index employs a rigorous screening process to select its constituents. It excludes companies involved in controversial business activities such as tobacco, controversial weapons, and thermal coal. Furthermore, it only includes issuers that demonstrate strong ESG performance, as indicated by a high MSCI ESG rating. This dual approach ensures that the investment aligns with the values of socially conscious investors. The strategy is suitable for those seeking a core fixed-income allocation that provides diversification and a degree of stability. This specific share class incorporates a currency hedge, an additional feature designed to mitigate the impact of exchange rate fluctuations for investors whose home currency differs from that of the underlying assets.