Currency hedged Reduce currency risks

When it comes to your equity investments, concentrate solely on the markets themselves: With the currency-hedged UBS ETFs based on equity indices, you hedge your portfolio against exchange rate fluctuations – cost-effectively, efficiently and transparently.

What is currency hedging and what are the benefits of UBS Currency Hedge?

Currency hedging is the forward sale or purchase of a foreign currency, thus reducing the exchange risk exposure connected with assets or liabilities denominated in a foreign currency. Fluctuating exchange rates can impact returns on foreign investments which is why UBS offer currency hedging to investors wanting to reduce exchange rate risk and optimize return opportunities.

A wide selection of benefits are enjoyed by the UBS ETF investor. Currency hedging with UBS allows cost efficient access to currency hedged indices. With the potential to hedge our portfolios in four different currencies, UBS Asset Management offers investors the widest range of currency-hedged ETFs in Europe*.

Exchange rate fluctuations have many causes, whether central banks' monetary policy, external trade imbalances or unexpected political changes. In difficult phases in particular, these fluctuations can can drive either profits or losses on stock markets.

With UBS ETFs, however, investors can concentrate completely on their equity strategies – UBS Asset Management offers you a wide range of physically replicated ETFs based on equity indices with currency hedging. This transparent currency hedging strategy helps you to reduce exchange rate risk and optimize your return opportunities.

Performance of MSCI Japan indices and JPY/CHF exchange rate

This example illustrates just how significantly currency fluctuations can impact returns: Calculated in Japanese yen (JPY), the MSCI Japan Index generated a return of 11.28% p.a. between March 2009 and March 2014. Due to exchange rate losses against the franc (CHF), however, Swiss investors only saw a return of 4.90% p.a. With currency hedging in CHF, the annualized return was 9.28%, almost twice as high.

With UBS ETFs, investors can hedge their portfolio in four currencies: Swiss francs (CHF), euros (EUR), US dollars (USD) and the pound sterling (GBP). The currency-hedged ETFs offer access to the equity markets in the Eurozone, the US, Switzerland, Japan, Australia and Canada. This allows UBS Asset Management to offer investors the widest range of currency-hedged ETFs in Europe.*

CHF

EUR

USD

GBP

MSCI Australia UCITS ETF

MSCI Australia UCITS ETF

MSCI Australia UCITS ETF

MSCI Australia UCITS ETF

MSCI Canada UCITS ETF

MSCI Canada UCITS ETF

MSCI Canada UCITS ETF

MSCI Canada  UCITS ETF

MSCI Japan UCITS ETF

MSCI Japan UCITS ETF

MSCI Japan UCITS ETF

MSCI Japan UCITS ETF

MSCI United Kingdom UCITS ETF

MSCI United Kingdom UCITS ETF

MSCI United Kingdom UCITS ETF

MSCI EMU UCITS ETF

MSCI EMU UCITS ETF

MSCI USA UCITS ETF

MSCI EMU UCITS ETF

MSCI USA UCITS ETF

MSCI USA UCITS ETF

MSCI Switzerland UCITS ETF

MSCI Switzerland UCITS ETF

MSCI Switzerland UCITS ETF

 

MSCI Switzerland

MSCI Switzerland

MSCI Switzerland

UBS ETFs hedge the foreign currencies of the replicated indices by selling foreign currency forwards at the one-month forward rate. The sum of the sold forwards as at the last trading day of the month corresponds to the market capitalization weighting of the equities contained in the index. These securities are valued in the respective currency two trading days before the first calendar day of the following month. The amount hedged remains constant over the entire month.

The overall return of a currency-hedged UBS ETF therefore comprises two components:

  1. The return of the non-currency-hedged index in the selected reference currency.
  2. The profit or loss arising from the forward contract  in the selected reference currency
  • Reduced foreign currency risk.
  • Cost efficient access to currency hedged indices.
  • Transparent currency-hedging methodology with one month forward FX contracts.
  • Physical replication of the index market exposures.
  • Distributing and accumulating share classes available.
  • UCITs compliant fund structure.
  • Widest range of currency-hedged ETFs in Europe.*

Currency hedged ETFs in focus

Fundname ISIN Replication Fee Last NAV
Currency
Fact sheet

UBS ETF (LU) MSCI Japan hedged EUR UCITS ETF (EUR) A-disLU0937837945

Physical

0.45%

18.5576 EUR

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Fund description

The fund generally invests in large and mid cap stocks which are contained in the MSCI Japan hedged to EUR index. The relative weightings of the components correspond to their weightings in the index.The investment objective is to replicate the price and yield performance of the MSCI Japan hedged to EUR.

UBS ETF (LU) MSCI UK hedged USD UCITS ETF (USD) A-disLU0937837275

Physical

0.30%

12.6214 USD

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Fund description

The fund generally invests in large and mid cap stocks which are contained in the MSCI United Kingdom index. The relative weightings of the components correspond to their weightings in the index.The investment objective is to replicate the price and yield performance of the MSCI United Kingdom100% hedged to USD.

UBS ETF (LU) MSCI Switzerland 20/35 hedged to USD UCITS ETF (USD) A-accLU0977261089

Physical

0.30%

21.0275 USD

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Fund description

The fund invests in large and mid cap stocks which are contained in the MSCI Switzerland 20/35 index.The relative weightings of the components correspond to their weightings in the index.The investment objective is to replicate the price and yield performance of the MSCI Switzerland.

UBS ETF (IE) MSCI USA hedged EUR UCITS ETF (EUR) A-disIE00BD4TYF66

Physical

0.24%

19.3857 EUR

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Fund description

The fund generally invests in large and mid cap stocks which are contained in the MSCI USA hedged to EUR index. The relative weightings of the components correspond to their weightings in the index.The investment objective is to replicate the price and yield performance of the MSCI USA 100% hedged to EUR.

UBS ETF (LU) MSCI Japan hedged to USD UCITS ETF (USD) A-accLU0977260867

Physical

0.45%

22.3575 USD

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Fund description

The fund invests in large and mid cap stocks which are contained in the MSCI Japan hedged to USD index.The relative weightings of the components correspond to their weightings in the index.The investment objective is to replicate the price and yield performance of the MSCI Japan hedged to USD.

UBS ETF (LU) MSCI EMU hedged GBP UCITS ETF (GBP) A-accLU0950669688

Physical

0.28%

20.0388 GBP

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Fund description

The fund generally invests in European large and mid cap stocks which are contained in the MSCI EMU index. The relative weightings of the components correspond to their weightings in the index.The fund invests in shares and currency hedges according to the respective composition of the index. The investment objective is to replicate the price and yield performance of the MSCI EMU hedged to GBP.

UBS ETF (LU) MSCI EMU hedged USD UCITS ETF (USD) A-disLU0937835576

Physical

0.28%

24.0629 USD

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Fund description

The fund generally invests in European large and mid cap stocks which are contained in the MSCI EMU index. The relative weightings of the components correspond to their weightings in the index.The investment objective is to replicate the price and yield performance of the MSCI EMU hedged to USD.

UBS ETF (IE) MSCI USA hedged CHF UCITS ETF (CHF) A-accIE00BD4TYL27

Physical

0.24%

20.6596 CHF

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Fund description

The fund generally invests in large and mid cap stocks which are contained in the MSCI USA hedged to CHF index. The relative weightings of the components correspond to their weightings in the index.The investment objective is to replicate the price and yield performance of the MSCI USA 100% hedged to CHF.

UBS ETF (LU) MSCI UK hedged USD UCITS ETF (USD) A-accLU0950671403

Physical

0.30%

13.9966 USD

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Fund description

The fund generally invests in large and mid cap stocks which are contained in the MSCI United Kingdom index. The relative weightings of the components correspond to their weightings in the index.The investment objective is to replicate the price and yield performance of the MSCI United Kingdom100% hedged to USD.

UBS ETF (LU) MSCI EMU hedged USD UCITS ETF (USD) A-accLU0950669415

Physical

0.28%

26.2891 USD

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Fund description

The fund generally invests in European large and mid cap stocks which are contained in the MSCI EMU index. The relative weightings of the components correspond to their weightings in the index.The investment objective is to replicate the price and yield performance of the MSCI EMU hedged to USD.

UBS ETF (LU) MSCI Switzerland 20/35 hedged to EUR UCITS ETF (EUR) A-accLU0977260941

Physical

0.30%

14.9699 EUR

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Fund description

The fund invests in large and mid cap stocks which are contained in the MSCI Switzerland 20/35 hedged to EUR index.The relative weightings of the components correspond to their weightings in the index.The investment objective is to replicate the price and yield performance of the MSCI Switzerland 20/35 hedged to EUR.

UBS ETF (LU) MSCI Switzerland 20/35 hedged to USD UCITS ETF (USD) A-disLU0979892659

Physical

0.30%

19.6361 USD

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Fund description

The fund invests in large and mid cap stocks which are contained in the MSCI Switzerland 20/35 index.The relative weightings of the components correspond to their weightings in the index.The investment objective is to replicate the price and yield performance of the MSCI Switzerland.

UBS ETF (IE) MSCI USA hedged EUR UCITS ETF (EUR) A-accIE00BD4TYG73

Physical

0.24%

20.3072 EUR

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Fund description

The fund generally invests in large and mid cap stocks which are contained in the MSCI USA hedged to EUR index. The relative weightings of the components correspond to their weightings in the index.The investment objective is to replicate the price and yield performance of the MSCI USA 100% hedged to EUR.

UBS ETF (LU) MSCI Japan hedged GBP UCITS ETF (GBP) A-disLU0969638401

Physical

0.45%

20.0482 GBP

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Fund description

The fund generally invests in large and mid cap stocks which are contained in the MSCI Japan hedged to GBP index. The relative weightings of the components correspond to their weightings in the index.The investment objective is to replicate the price and yield performance of the MSCI Japan 100% hedged to GBP.

UBS ETF (LU) MSCI EMU hedged CHF UCITS ETF (CHF) A-accLU0950669175

Physical

0.28%

28.3178 CHF

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Fund description

The fund generally invests in European large and mid cap stocks which are contained in the MSCI EMU index. The relative weightings of the components correspond to their weightings in the index.The investment objective is to replicate the price and yield performance of the MSCI EMU hedged to CHF.

UBS ETF (LU) MSCI Japan hedged GBP UCITS ETF (GBP) A-accLU0969638583

Physical

0.45%

21.0555 GBP

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Fund description

The fund generally invests in large and mid cap stocks which are contained in the MSCI Japan hedged to GBP index. The relative weightings of the components correspond to their weightings in the index.The investment objective is to replicate the price and yield performance of the MSCI Japan 100% hedged to GBP.

UBS ETF (LU) MSCI Japan hedged EUR UCITS ETF (EUR) A-accLU0950672476

Physical

0.45%

19.3499 EUR

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Fund description

The fund generally invests in large and mid cap stocks which are contained in the MSCI Japan hedged to EUR index. The relative weightings of the components correspond to their weightings in the index.The investment objective is to replicate the price and yield performance of the MSCI Japan hedged to EUR.

UBS ETF (LU) MSCI EMU hedged GBP UCITS ETF (GBP) A-disLU0937835733

Physical

0.28%

17.9536 GBP

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Fund description

The fund generally invests in European large and mid cap stocks which are contained in the MSCI EMU index. The relative weightings of the components correspond to their weightings in the index.The fund invests in shares and currency hedges according to the respective composition of the index. The investment objective is to replicate the price and yield performance of the MSCI EMU hedged to GBP.

UBS ETF (IE) MSCI USA hedged GBP UCITS ETF (GBP) A-disIE00BD4TYH80

Physical

0.24%

19.3035 GBP

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Fund description

The fund generally invests in large and mid cap stocks which are contained in the MSCI USA hedged to GBP index. The relative weightings of the components correspond to their weightings in the index.The investment objective is to replicate the price and yield performance of the MSCI USA 100% hedged to GBP.

UBS ETF (LU) MSCI UK hedged EUR UCITS ETF (EUR) A-accLU0950671239

Physical

0.30%

18.1995 EUR

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Fund description

The fund generally invests in large and mid cap stocks which are contained in the MSCI United Kingdom index.The relative weightings of the components correspond to their weightings in the index.The fund invests in shares and currency hedges according to the respective composition of the index.The investment objective is to replicate the price and yield performance of the MSCI United Kingdom100% hedged to EUR.