UBS AM has listed a new exchange-traded fund on the London Stock Exchange. The UBS Nasdaq-100 UCITS ETF began trading today.
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By ETFWorld.co.uk
André Mueller, Head of Client Coverage at UBS Asset Management
The fund’s ISIN is IE000G6J9EE6.
This ETF is a passively managed vehicle designed to track the performance of the Nasdaq-100 Currency Hedged GBP Notional Index (Net Total Return). This index comprises the 100 largest non-financial companies listed on the Nasdaq Stock Market. Its constituents are drawn from major sectors such as computer hardware, software, telecommunications, retail, wholesale trade, and biotechnology.
A key feature of this ETF is its built-in currency hedge for GBP-based investors. The hedging strategy aims to mitigate the impact of exchange rate fluctuations between the US dollar and the British pound on returns.
The fund will primarily use a full replication strategy to achieve its objective. This means it intends to hold all the constituent securities of the index in their respective weights. The documentation states that the portfolio should be a near mirror image of the index.
The prospectus notes that the fund may, under exceptional circumstances, hold securities not currently in the index. This could occur in anticipation of a new addition to the index. The fund is also permitted to use derivatives for risk management, cost reduction, or to generate additional capital or income. The use of derivatives can multiply gains or losses.
Additionally, the fund may engage in securities lending.
The documentation explicitly states that sustainability risks are not integrated into the investment process, as they are not a factor in the selection of the underlying index.
As with any index-tracking fund, its performance is directly dependent on the results of its benchmark index. The primary risk for investors is the performance of the Nasdaq-100 index itself, concentrated in the non-financial, technology-heavy sector. The currency hedging strategy introduces execution and counterparty risks associated with the derivatives used to implement the hedge.
| Product Name | UBS NASDAQ-100 UCITS ETF HGBP ACC |
| ISIN | IE000G6J9EE6 |
| SEDOL | BVN5H07 |
| Trading Currency | GBX |
| Management Fee | 0,16% |
| Benchmark | Nasdaq-100 Currency Hedged GBP Notional Index (Net Total Return) |
Source: ETFWorld
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