UBS ETF launches USA Dividend Aristocrats on the LSE

UBS (Irl) ETF plc – S&P USA Dividend Aristocrats ESG Elite UCITS ETF

The Fund is passively managed and seeks to track performance of high dividend yielding / environmental, social and governance (“ESG”)-scoring companies in the United States that meet certain sustainability criteria. The Fund achieves its objective by tracking the S&P ESG Elite High Yield Dividend Aristocrats Index (Net Return). The Index includes high ESG rated companies and excludes companies with negative social or environmental impact. This approach excludes at least 20% of the least well-rated securities as against the standard index universe. The Fund’s ESG rating aims to be higher than the ESG rating of a fund tracking a standard index. Constituents are selected from eligible companies in the S&P Composite 1500 that have followed a managed-dividends policy of increasing or maintaining dividends for at least 20 consecutive years.

Constituents are weighted by indicated dividend yield. The Fund will seek to hold all of the shares of the Index, in the same proportions as the Index, so that the portfolio of the Fund will be a near mirror image of the Index. The Fund may, in exceptional circumstances, hold securities which are not comprised in the Index, including, e.g., securities which are expected to shortly be included in the Index. The Fund may, to reduce risk or costs, use derivative instruments which may multiply the gains or losses made by the Fund on given investment or on its investments generally.

The impact of currency fluctuations between any foreign currency to the Index currency is reduced by selling foreign currency forwards at one month forward rate in line with the currency version of the Index. Hedging reduces the effect of the fluctuations in the exchange rate between the currencies of the equities that make up the Share Class currency.

This Fund promotes environmental and/or social characteristics but does not have a sustainable investment objective.