UBS AM Lists Two Development Bank Bond ETFs on LSE, Extending Sustainable Debt Range

UBS AM : Two UBS fixed-income ETFs focused on bonds issued by global multilateral development banks have commenced trading on the London Stock Exchange (LSE).

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By ETFWorld.co.uk

André Mueller, Head of Client Coverage at UBS Asset Management

Contrary to their initial presentation as new launches, public data indicates these funds are established products with existing assets under management (AUM).

UBS Sustainable Development Bank Bonds 1-5 UCITS ETF (hGBP dis) (ISIN: LU3065096839) and UBS Sustainable Development Bank Bonds 1-5 UCITS ETF (USD dis) (ISIN: LU3065084744) track the Solactive Global Multilateral Development Bank Bond USD 25% Issuer Capped 1-5 Index. Their stated total expense ratios (TER) are 0.20% .

Key ETF Details

Investment Focus and Index Composition

Both ETFs provide exposure to a specific segment of the bond market: US-dollar-denominated bonds issued by major supranational development banks, with maturities between one and five years. The underlying index includes bonds from institutions such as the International Bank for Reconstruction & Development (IBRD), Asian Development Bank (ADB), African Development Bank (AfDB), and European Bank for Reconstruction & Development (EBRD) .

The index employs a 25% issuer cap, which prevents any single bank from dominating the portfolio . This concentration limit is a key risk-control feature of the strategy. The most recent ordinary rebalance of the index became effective on 2 January 2026 .

The GBP-hedged share class is designed to mitigate currency fluctuations for sterling-based investors, as the fund’s currency risk is “to a large extent hedged” against the US dollar, the base currency of the assets . The USD share class provides unhedged exposure.

Source: ETFWorld