UBS launches ETF focused on EM sovereign bonds

UBS launches ETF focused on EM sovereign bonds

UBS Asset Management has launched an exchange-traded fund (ETF) focused on sovereign and quasi-sovereign bonds in emerging markets.

The UBS ETF Barclays USD Emerging Markets Sovereign Ucits ETF will focus on debt from around 60 emerging market countries.

Index constituents are denominated in US dollars, while investments in a single country cannot exceed 3 per cent. Illiquid market segments are removed at the index level using a liquidity filter.

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Andrew Walsh, head of UBS ETF sales for UK and Ireland, said the listing of the product on the London Stock Exchange “continues our expansion in the fixed income space and offers our clients a simple way to access dollar-denominated government debt issued by emerging economies with competitive pricing”.