Industry Updates

UBS S&P 500 ESG ETF reaches $1bn milestone

Launched in March 2019

George Geddes

a man with a slight smile

UBS Asset Management’s (UBS AM) has seen its sustainable S&P 500 ESG ETF reach the landmark of $1bn in assets under management (AUM).

Launched in March 2019, the UBS S&P 500 ESG UCITS ETF (5ESG) is the largest index tracking the S&P 500 ESG index in Europe.

5ESG offers exposure to the renowned S&P 500 while implementing a light ESG screener.

This process excludes roughly 25% of the market cap of the parent index based on various ESG criteria including involvement in industries such as tobacco or controversial weapons.

The performance of the sustainable version of the index has been significant as well, having climbed 8.47% year-to-date and outperformed its parent index by 2.4%.

The S&P 500 ESG index is comprised of 310 constituents, notably less than the 505 that comprise the S&P 500.

5ESG is available in US dollars with a fee of 0.12% as well in Swiss francs, euros and sterling for a fee of 0.22%.

UBS AM converts ETFs to Clearstream’s ICSDplus model

Clemens Reuter (pictured), global head of passive and ETF investment specialists at UBS AM, said: "Over the last 10 years we have built a sustainable ETF product shelf tailored to meeting investors’ different needs as our funds provide a range of ‘shades of green’, offering clients the opportunity to select the best solutions for their portfolios.”

In March, the firm saw its ESG ETF range surpass the €10bn mark. It is the second-largest issuer of ESG ETFs in terms of AUM behind BlackRock.

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