Long position for European equities and the US dollar in one product.…
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Tom Fekete, Head of Product Development for iShares in EMEA
UBS Global Asset Management has today listed a new ETF on the LSE . The UBS ETF (LU) MSCI EMU hedged USD UCITS ETF (USD) A-dis offers investors the opportunity to invest in equities from Eurozone countries with US dollar currency hedging.
The ETF offers investors the opportunity to invest in equities from Eurozone countries with US dollar currency hedging. The built-in currency hedging in US dollars offers an interesting feature: With this ETF, investors can benefit when European equities perform well – and at the same time, benefit when the US dollar appreciates against the euro. This can provide an interesting tactical opportunity, particularly in light of the recent strong fluctuations in the currency markets.
The euro has fallen appreciably in value against the US dollar in recent months. This may allow European companies drawing up their accounts in euros and securing part of their revenues outside Europe to increase earnings. At the same time, many industry experts expect the euro to continue falling against a number of key currencies.
This latest listing further broadens UBS’s currency-hedged ETF offering. UBS ETFs has in excess of GBP 2.5bn in total AUMs in this space, making it the largest provider of currency-hedged ETFs in Europe.
The new UBS ETF on the LSE:
|Name||Fund currency||Trading currency||TER||SEDOL||Appropriation of income||ISIN||Reuters||Bloomberg|
|UBS ETF (LU) MSCI EMU hedged USD UCITS ETF (USD) A-dis||USD||USD||0.33%||BVG1F53||distributing||LU0937835576||UC89.L||UC89 LN|