UBS AM Launches New Article 8 Small Cap ETF

    Stockholm (NordSIP) – UBS Asset Management (UBS AM) launched a sustainable exchange-traded fund (ETF) tracking the MSCI World Small Cap SRI Low Carbon Select 5% Issuer Capped index on August 23rd.

    Based on the MSCI World Small Cap investment universe, the index applies screening encompassing norms-based exclusions, values-based exclusions as well as climate-related exclusions that substantially reduce its carbon footprint. As a result, the index does not include companies found to be in violation of the UN Global Compact, or operating in the tobacco, controversial weapons, thermal coal, oil & gas, industries.

    “Sustainability is a key focus area for UBS AM and over the past ten years we have built a strong track record of managing SRI ETFs,” says Florian Cisana, Head of ETF & Index Fund Sales Nordics at UBS Asset Management. “This latest solution provides investors with the opportunity to gain global developed small-cap exposure, together with a strong sustainability profile.”

    By filtering out the highest emitting companies, the new index is able to provide a reduced carbon footprint compared to the parent index. The resulting ESG characteristics qualify the ETF as an Article 8 product under the European Union’s Sustainable Finance Disclosure Regulation (SFDR).

    The UBS ETF (IE) MSCI World Small Cap Socially Responsible UCITS ETF is available in two share classes (USD A-dis and USD A-acc). An additional EUR-hedged share class (A-acc) will be launched in the coming weeks. Listings will be across key European exchanges, including LSE, Xetra, Borsa Italiana and SIX Swiss Exchange.

    UBS AM manages a wide range of sustainable ETFs, including USD32 billion in Article 8 and 9 ETFs.



    Image by Adina Voicu from Pixabay

    Filipe Albuquerque
    Filipe Albuquerque
    Filipe is an economist with 8 years of experience in macroeconomic and financial analysis for the Economist Intelligence Unit, the UN World Institute for Development Economic Research, the Stockholm School of Economics and the School of Oriental and African Studies. Filipe holds a MSc in European Political Economy from the LSE and a MSc in Economics from the University of London, where he currently is a PhD candidate.

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