UBS Asset Management has expanded its climate change ETF suite with the launch of seven equity strategies.
The EMU, European, Japan, US, and global iterations of the UBS MSCI Climate Paris Aligned UCITS ETFs are listed on the Deutsche Boerse, Borsa Italiana, and Swiss SIX Exchange. Its EMU and European renditions have total expense ratios (TERs) of 0.18% while the Japan versions charge 0.20%, and US and World exposures have fees of 0.12% and 0.20%, respectively.
UBS said the suite will be extended to include all-country world and emerging markets exposures in the coming months.
The seven ETFs are:
- UBS ETF MSCI EMU Climate Paris Aligned UCITS ETF (EMUPA)
- UBS ETF MSCI Europe Climate Paris Aligned UCITS ETF (EURPA)
- UBS ETF MSCI Japan Climate Paris Aligned UCITS ETF (JAPA)
- UBS ETF MSCI USA Climate Paris Aligned UCITS ETF (USAPA)
- UBS ETF MSCI World Climate Paris Aligned UCITS ETF (WOPA)
- UBS ETF MSCI ACWI Climate Paris Aligned UCITS ETF (ACPA)
- UBS ETF MSCI Emerging Markets Climate Paris Aligned UCITS ETF (EMPA)
The Swiss asset manager said the new products would support equity investors in reducing their climate risks and would seek to benefit from the opportunities arising from the ongoing shift to a decarbonised economy.
The ETFs track MSCI Climate Paris Aligned indices which select companies meeting criteria on climate risks and opportunities, and excludes those involved in controversial weapons, tobacco, oil, thermal coal, and gas-related activities.
The portfolios are optimised to achieve other goals such as reducing index exposure to the physical risks posed by extreme weather, by at least 50%; increasing the weight of companies exposed to climate transition opportunities; weight favourably towards companies with credible carbon reduction targets; and those aligned with Taskforce for Climate-related Financial Disclosures recommendations with a 1.5°C climate scenario.
The range is compliant with Article 9 of the EU’s Sustainable Finance Disclosure Regulation (SFDR).
Clemens Reuter, global head of ETF and index fund client coverage at UBS AM, said: “This suite of Paris-aligned ETFs offers investors portfolio building blocks with the added benefit of restricting CO2 emissions to limit the global temperature rise to 1.5°C.”
Today’s suite is just the latest in a prolonged rollout of new products by UBS AM, with other climate-focused launches including the UBS ETF MSCI Europe Socially Responsible UCITS ETF (UIW1) and UBS SPI ESG ETF (SPISI) on 22 March, and the UBS Climate Aware Global Developed Equity UCITS ETF (CLIMA) on 17 March.
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