UBS Asset Management (UBS AM) has launched an innovative ETF that tracks the Bloomberg MSCI US Liquid Corporates 1-5 Year Sustainable Index. This provides investors with access to US corporate bonds that have passed various environmental, social and governance (ESG) sustainability filters.
Sign up to our free newsletters
By ETFWorld.co.uk
Clemens Reuter, Global Head of ETF & Index Fund Client Coverage UBS AM
The new exchange-traded fund (ETF) offers liquid and sustainable exposure to US corporate bonds with short maturities
The ETF targets the most liquid part of the US credit market and invests only in securities with a maturity of 1 to 5 years
ESG screening excludes issuers involved in a broad list of controversial activities and companies that do not have a sufficiently high ESG rating
The ETF also adopts many of the liquidity filters of the underlying index. Another key factor is that it only invests in bonds in the maturity range of one to five years. In addition, issuers whose ESG rating is lower than BBB in the MSCI rating or which have been marked with a “red flag” by MSCI are excluded. The latter is the case if companies are active in controversial business areas or are affected by controversies.
This new edition complements the existing UBS ETF (LU) Bloomberg Euro Area Liquid Corporate 1-5 Year Sustainable UCITS ETF.
The UBS ETF (LU) Bloomberg MSCI US Liquid Corporates 1-5 Year Sustainable UCITS ETF is available on major European exchanges, including Xetra, Borsa Italiana and SIX Swiss Exchange.
Source: ETFWorld
Subscribe to Our Newsletter
