UBS launches US corporate bonds hedged ETF

UBS Asset Management has listed the UBS ETF (LU) Barclays US Liquid Corporates interest rate hedged Ucits ETF on London Stock Exchange.

The ETF provides exposure to a diversified basket of liquid US corporate bonds issued by investment grade companies while simultaneously hedging against interest rate risk.

UBS AM believes its ETF helps to reduce the impact of interest rate rises enabling investors to effectively separate out the credit risk of the bonds and be compensated for that discrete performance.

Andrew Walsh, head of UBS ETF Sales UK & Ireland, commented: “Those wishing to benefit from the favourable economic climate by investing in corporate bonds should consider minimising the interest rate risk in their portfolio. The mitigation of interest rate risk means that the bond portfolio becomes largely unaffected to interest rate hikes.

“This new UBS ETF with its interest rate hedge offers pure credit exposure in a cost-effective way.”

Adrien Paredes-Vanheule
Adrien Paredes-Vanheule is deputy editor and French-Speaking Europe Correspondent for InvestmentEurope, covering France, Belgium, Geneva and Monaco. Prior to joining InvestmentEurope, he spent almost five years writing for various publications in Monaco, primarily as a criminal and financial court reporter. Before that, he worked for newspapers and radio stations in France, in particular in Lyon.

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