Fund Solutions

UBS AM Unveils Climate Transition ETF  

UBS Asset Management (UBS AM) has launched the first exchange-traded fund (ETF) tracking a climate transition index based on the S&P 500 index universe. The UBS ETF S&P 500 Climate Transition ESG UCITS ETF has an underlying index portfolio that follows a decarbonisation pathway with a 30% initial carbon intensity reduction and subsequently a 7% year-on-year self-decarbonisation. Furthermore, the index provides for an improvement in overall ESG score compared to the parent index and applies norms-based exclusions. The fund meets the requirements of the EU Climate Transition Benchmark (CTB) and qualifies as an Article 9 fund under EU Sustainable Finance Disclosure Regulation.  UBS AM said it is intended for investors who require US large-cap exposure with a net zero overlay combined with improvement of the overall ESG profile. It added that the S&P 500 index is the flagship index for US equity exposure, so the ETF opens the possibility for investors wishing to retain the S&P 500 universe whilst applying a CTB overlay. 

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