New Listing

UBS AM launches emerging markets ex-China ETF

Fee of 0.16%

Theo Andrew


UBS Asset Management has launched an ETF tracking emerging market stocks that exclude China.

The UBS ETF MSCI Emerging Markets ex China UCITS ETF (EMXCN) is listed on Deutsche Boerse and the Six Swiss Exchange with a total expense ratio (TER) of 0.16%.

The ETF tracks the MSCI Emerging Markets ex China Total Return Net index of 666 large and mid-cap companies based in 23 out of 24 emerging markets defined by MSCI, excluding China.

Currently, the most heavily weighted countries in the index are Taiwan (21.3%), India (20.5%) and South Korea (17.9%).

In terms of sector weights, information technology (26.6%) and financials (24.5%) make up half of the index.

UBS AM declined to comment on the launch.

Investors have been attracted to Asia and emerging market ETFs that exclude China in recent months due to concerns over its faltering economy and tittering property market.

The market also tends to dominate market cap-weighted indices, accounting for almost 30% of the MSCI Emerging Market index, allowing investors to diversify their emerging market allocations.

There are currently three emerging market ETFs in the market that excludes Chinese equities, with combined assets under management of £648m, all tracking MSCI indices.

The largest is the Lyxor MSCI Emerging Markets Ex China UCITS ETF (EMXC) followed by the Amundi MSCI Emerging Ex China ESG Leaders Select UCITS ETF (EMXG) and the iShares MSCI EM ex-China UCITS ETF (EXCS).

EMXCN is one of several new products from UBS AM this summer following the launch of the UBS ETF Global Green Bond ESG 1-10 UCITS ETF (GREENE), the UBS ETF S&P USA Dividend Aristocrats ESG Elite UCITS ETF (CHSB) and the UBS ETF CMCI Commodity Transition SF UCITS ETF (RENEW) in July.

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