UBS AM Lists MSCI World Small Cap and World ex USA ETFs on the London Stock Exchange

UBS Asset Management (UBS AM) has broadened its offering for UK investors with the listing of two new passive UCITS ETFs on the London Stock Exchange.

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Article created by the editorial staff of ETFWorld.co.uk

André Mueller, Head of Client Coverage at UBS Asset Management

The funds provide streamlined access to global small-cap equities and developed markets outside the United States, featuring competitive fee structures.

The two listings, dated September 1, 2026, are the UBS MSCI World Small Cap UCITS ETF (ISIN IE000AZ2HZ31) and the UBS MSCI World ex USA UCITS ETF (ISIN LU2807513085, distributing share class).

Global Small Cap Exposure

The UBS MSCI World Small Cap UCITS ETF tracks the MSCI World Small Cap Index, offering exposure to smaller companies across developed markets that meet specific size, liquidity, and free-float criteria. The fund carries a Total Expense Ratio (TER) of 0.20% annually.

According to fund documentation, the strategy is passively managed and employs a “portfolio optimization” technique—using quantitative models to invest in a representative sample of the index’s constituents rather than holding every stock.

Developed Markets ex-USA

The second fund, the UBS MSCI World ex USA UCITS ETF, offers a more cost-efficient route to diversification for investors seeking to reduce their reliance on the US equity market. With a TER of just 0.09%, it is positioned among the lower-cost options in its segment.

The fund tracks the MSCI World ex USA Index, which covers large- and mid-cap stocks across 22 developed markets. This benchmark represents approximately 85% of the free-float-adjusted market capitalization in each respective country. The ETF generally invests in the constituent stocks to replicate index weightings, with provisions to use derivatives where direct replication is impractical or to improve efficiency.

Shared Benefits and Risks

Both products are UCITS-compliant, providing a regulated structure for investor protection. UBS highlights benefits including single-transaction access to diversified market segments, broad diversification across countries and sectors, and a focus on transparency and cost efficiency.

As with any equity ETF, the value of investments can fluctuate, and investors may lose capital. UBS cautions that the traded price on the exchange may differ from the fund’s Net Asset Value (NAV). For the MSCI World ex USA product, the potential use of OTC derivatives introduces counterparty risk, which the issuer notes is mitigated by a collateral policy.

The introduction of these two funds enhances UBS’s suite of index-tracking products available in the UK, offering investors specialized tools for portfolio construction.

Source: ETFWorld