UBS Asset Management has expanded its environmental, social and governance (ESG) suite with the launch of a global corporate bond product.
The UBS ETF Bloomberg Barclays MSCI Global Liquid Corporate Sustainable UCITS ETF is listed on SIX Swiss, Xetra and the Borsa Italiana and has a total expense ratio (TER) of 0.20%.
Tracking the Bloomberg Barclays Global Aggregate Corporates index, the ETF offers exposure to over 320 corporate issuers.
The ETF implements an ESG filter which screens out the bonds that do not score high enough on the rating criteria.
Andrew Walsh, head of UBS passive and ETF specialist sales for the UK and Ireland at UBS AM, commented: “We have seen how ESG ETFs outperformed their ‘standard’ peers during the volatility caused by the coronavirus pandemic, and investors are increasingly demanding sustainability aspects to products.
“With this launch, we are able to provide a core ESG exposure based on a significant and widely used portfolio building block that caters to clients’ needs.”
Earlier this year, Morningstar said the passive ESG bond space is "ripe for expansion" in Europe with assets representing just 5% of the overall ESG bond market.
UBS AM is one of the leading issuers in the ESG ETF space in Europe with around 32% market share and €13bn assets under management (AUM).
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