Fund Solutions

New UBS AM ETF to Track Green Bond Index

UBS Asset Management (UBS AM) has introduced a green bond exchange-traded fund (ETF) that tracks the newly developed Bloomberg MSCI Global Green Bond 1-10 Year Sustainability Select index while incorporating additional sustainability considerations. The Bloomberg MSCI Global Green Bond 1-10 Year Sustainability Select index already excludes controversial weapons and thermal coal. However, the newly developed index also incorporates broader exclusions that involve conventional weapons, civilian firearms, tobacco, alcohol, oil sands, and Arctic oil. Moreover, the index screens out issuers with an MSCI ESG rating below BBB or an MSCI ESG Controversy score of 0. Additionally, it applies a 3% issuer cap to enhance diversification and filters out bonds with maturities exceeding ten years. Clemens Reuter, Global Head of ETF & Index Fund Client Coverage at UBS Asset Management, said: Investors are increasingly seeking innovative solutions to help meet a range of climate and sustainability needs. This ETF enables investors to gain global exposure to green bonds with environmental benefits – while also considering the ESG profile of the underlying issuers. The UBS (Lux) Fund Solutions – Global Green Bond ESG 1–10 UCITS ETF adheres to Article 8 of the EU‘s Sustainable Finance Disclosure Regulation (SFDR). The ETF is available both unhedged in USD and in a EUR hedged version. It operates as a passively managed fund and is listed on key European exchanges, including Xetra, Borsa Italiana, and SIX Swiss Exchange.

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