UBS Asset Management (AM) has launched a S&P USA Dividend Aristocrats ESG Elite UCITS ETF. UBS AM said the Article 8 compliant fund under the EU’s Sustainable Finance Disclosure Regulation was launched in response to client demand for products which “combine ESG and factor investing”. The new ETF tracks the S&P ESG Elite High Yield Dividend Aristocrats TRN Index, which is designed to replicate the performance of the dividend yield-weighted index for US companies that follow a managed-dividends policy of “consistently increasing” dividends every year for at least 20 years. The index is constructed to “meet specific ESG criteria” and screening out ESG laggards in the worst 25% in terms of S&P DJI ESG Score. It additionally excludes businesses involved with conventional and unconventional oil and gas, thermal coal, controversial weapons, and tobacco. “Thanks to its comprehensive set of exclusions, the new ETF enables investors to get an exposure with a considerably improved ESG profile as compared to the parent benchmark”, UBS AM said.
