ETFs give investors access to the MSCI factor index family..…
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Eight new factor ETFs from UBS Global Asset Management have been tradable on Xetra and Börse Frankfurt since Tuesday.
The eight new UBS factor ETFs give investors the opportunity to participate in the performance of companies in the Eurozone and USA that were chosen according to one of the following factors: low volatility, quality, substance and distribution yield.
The two ETFs on the reference indices “MSCI EMU Select Dynamic 50% Risk Weighted Index” and “MSCI USA Select Dynamic 50% Risk Weighted Index” aim to replicate the aggregated volatility of the companies included in the parent index by up to 50%. The weighting of the companies in the reference index decreases with rising volatility.
The two UBS ETFs with the factor “quality” will replicate the performance of companies that were chosen on the basis of three parameters: dividend yield, lower leverage and stable profitability.
In the reference index for ETFs with the factor value, companies are selected on the basis of three parameters: the price-earnings ratio, price-to-book ratio, and the ratio of company value to operating income (cash flow).
In addition, with the two Factor MSCI Total Shareholder Yield ETFs, UBS focuses on companies with higher dividend yields in the form of dividends and share repurchase programmes.
The product offering in Deutsche Börse’s XTF segment currently comprises a total of 1,099 exchange traded funds. This selection, together with an average monthly trading volume of around €16 billion, makes Xetra Europe’s leading trading venue for ETFs.