UBS Global Asset Management has announces that is has listed eight smart beta ETFs on the London Stock Exchange. With these new investment solutions, investors can gain exposure to systematic factor high-exposed strategies on the US and Eurozone equity markets, thereby tilting their portfolios towards specific sources of risk and return..…
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Andrew Walsh, Head of UBS ETF sales UK & Ireland
The new UBS ETFs are based on the factor premium concept developed by financial market researchers Kenneth French and Eugene Fama among others. Historical analysis of sources of risk and returns on equity investments has shown that particular factor-based portfolios have outperformed the broad market in the long-run. UBS Factor ETFs now provide the opportunity to invest in four factor-based strategies, in a transparent and cost-efficient manner. These factors are prime value, low volatility, quality and total yield.
The recent indexation of each of these factor-exposed strategies has enabled UBS to provide our investors with the unique range of regionally focused factor ETFs. These factors are derived from the broad markets, MSCI USA and MSCI EMU, ensuring consistent construction, alongside existing market capitalization building blocks. One reason for doing so is that studies have shown that factor portfolios which are not influenced by currency movements stand out more clearly when compared with portfolios from different currency zones. UBS is therefore offering factor ETFs across two separate currency regions: the Eurozone and the USA.
Commenting on the listings Andrew Walsh, Head of UBS ETF sales UK & Ireland, said: “Whether one chooses to call it ‘Factor Investing’, ‘Smart Beta’ or ‘Alternative Beta’, what is very clear is that this category continues to gain increased interest from investors who are looking beyond the traditional parameters of market cap weighted benchmarks. We are starting to see a shift from a ‘core-satellite’ investment approach to a ‘core-factor-satellite’ approach. These eight new ETFs directly reflect our clients’ need for key factor exposures available at regional level.”
All eight ETFs track their respective benchmark through physical replication. All of the below listed ETFs are UCITS IV compliant, have applied for UK Reporting status and are suitable for SIPPs and ISAs
New UBS ETFs on the London Stock Exchange:
|UBS ETF (LU) Factor MSCI EMU Low Volatility UCITS ETF||GBp||0.28%||Yes||LU1215454460||BYTLKQ7||UD02 LN|
|UBS ETF (LU) Factor MSCI EMU Prime Value UCITS ETF||GBp||0.28%||Yes||LU1215452928||BYTLKS9||UD03 LN|
|UBS ETF (LU) Factor MSCI EMU Quality UCITS ETF||GBp||0.28%||Yes||LU1215451524||BYTLKV2||UD04 LN|
|UBS ETF (LU) Factor MSCI EMU Total Shareholder Yield UCITS ETF||GBp||0.28%||Yes||LU1215455947||BYTLKX4||UD05 LN|
|UBS ETF (IE) Factor MSCI USA Low Volatility UCITS ETF||GBp||0.25%||Yes||IE00BX7RQY03||BYTLLP3||UC95 LN|
|UBS ETF (IE) Factor MSCI USA Prime Value UCITS ETF||GBp||0.25%||Yes||IE00BX7RR706||BYTLLR5||UC96 LN|
|UBS ETF (IE) Factor MSCI USA Quality UCITS ETF||GBp||0.25%||Yes||IE00BX7RRJ27||BYTLLT7||UC99 LN|
|UBS ETF (IE) Factor MSCI USA Total Shareholder Yield UCITS ETF||GBp||0.25%||Yes||IE00BX7RRT25||BYTLLW0||UD01 LN|