We have seen that ETFs provide an excellent way for investors to develop socially responsible investment portfolios while still garnering similar if not better returns than the overall market.
With the broadest range of solutions both in the equity and fixed income universes, UBS has played a pioneering role in the area of socially responsible ETFs, leveraging its close cooperation with the world-leading MSCI ESG research. Many of UBS’s SRI ETFs are currency hedged as well, meaning investors need not worry about currency risk when investing beyond their home market.
UBS’s range of SRI ETFs comprises the UBS socially responsible equity ETFs and the UBS socially responsible fixed income ETFs. The equity ETFs are based on the MSCI socially responsible indices in the following markets: World, United Kingdom, Eurozone, USA, Pacific, Japan and Emerging Markets. The fixed income ETFs are based on the MSCI Barclays Liquid Corp Sustainable, which invests in corporate bonds issued by ESG-screened US companies.
The UBS socially responsible ETFs use physical replication to track the price and return performance of their respective indices, net of fees. Thanks to market makers they are also highly liquid, and offer advantages of distributing share classes and UCITS IV compliance.
The UBS socially responsible ETFs provide investors with exposure to the key equity and fixed income markets around the world, while guaranteeing a favorable sustainability profile. They leverage the high-quality research and experience in environmental, social and governance (ESG) analysis of MSCI while avoiding exposure to companies which are inconsistent with social, environmental or governance criteria.
Thanks to this, investors can be sure they are investing in companies with the best-in-class ESG compliance policies amongst their peers in each respective sector. They also offer socially responsible building blocks at a regional level.
The result is a broadly diversified portfolio of rigorously selected companies which is passively managed by tracking the net total return of the underlying benchmark index.