UBS Asset Management has listed a new ETF on London Stock Exchange providing exposure to eurozone corporate bonds defined as sustainable by the firm.
The UBS ETF Barclays MSCI Euro Area Liquid Corporates Sustainable ETF aims to track the price and yield performance of the Barclays MSCI Euro Area Liquid Corporates Sustainable Index.
It invests in bonds of the underlying index is exposed to investment grade securities denominated in euros and issued by eurozone corporate issuers operating in financial, industrial and utility sectors.
The firm specified that securities issued by corporations whose business activities are “inconsistent” with SRI criteria are excluded. Therefore businesses involved in alcohol, tobacco, gambling, civilian firearms and military weapons do not fit UBS’ criteria.
Andrew Walsh, head of UBS ETFs UK & Ireland, commented: “UBS ETFs recently passed $1 billion in SRI assets under management and is able to offer investors the possibility to build a sustainable worldwide portfolio in an efficient way. A recent study by UBS into SRI investing has shown that there is no negative effect on risk and return compared to portfolios that were not screened for sustainability criteria.”