UBS Asset Management is expanding its ETF range at a rapid rate with the latest two ESG ETF launches taking the total to five in the past two weeks.
The UBS ETF MSCI Europe Socially Responsible UCITS ETF (UIW1) and the UBS SPI ESG ETF (SPISI) are listed on Deutsche Boerse and SIX Swiss Exchange, with total expense ratios (TERs) of 0.18% and 0.15%, respectively.
Tracking the MSCI Europe Low Carbon Select Issuer Capped index, UIW1 offers exposure to large and mid-cap European stocks that are the best 25% scoring companies of the MSCI Europe from an ESG perspective.
UIW1 is the eighth ETF in the firm’s SRI range which moved to custom built low carbon indices last December, ETF Stream revealed.
The new indices have additional exclusion criteria such as excluding any company that own fossil fuel reserves or has high Scope 1 and 2 carbon emissions.
Meanwhile, SPISI tracks the recently created SPI ESG Weighted index which includes companies listed on the SIX Swiss Exchange.
To be included in the index, companies must not appear in the Swiss Association for Responsible Investment exclusion list, must have an ESG rating of at least a C+ and derive no more than 5% of revenues from ‘critical’ sectors; adult entertainment, armaments, gambling, genetic engineering, nuclear energy, coal, oil sands and tobacco.
Commenting on the launch, Christian Bahr, head index services at SIX, commented: “We are delighted that UBS AM launched an ETF on the SPI ESG Weighted index. With the new Swiss ESG indices we offer the choice between traditional and ESG index versions helping investors reflect ESG risks and opportunities into portfolios.”
ESG and SRI factor sensitivities to the business cycle
The Swiss issuer has been busy in the market over the past fortnight. On 12 March, the firm launched the first ETF to offer exposure to the S&P 500 ESG Elite index, the UBS ETF S&P 500 Elite UCITS ETF (S5EG), ETF Stream revealed.
Subsequently, the issuer launched two ETFs last week, the UBS ETF Solactive China Technology UCITS ETF (CQQQ) and its first ETF linked to the European Union climate benchmarks, the UBS Climate Aware Global Developed Equity UCITS ETF (CLIMA).