Corporate Bonds 

UBS launches sustainable corporate bond ETF

UBS launches sustainable corporate bond ETF

UBS Asset Management has launched an exchange-traded fund (ETF) providing access to eurozone corporate bonds that have been screened for sustainability.

The UBS ETF Barclays MSCI Euro Area Liquid Corporates Sustainable product seeks issuers with an MSCI ESG rating of BBB or higher from its index.

Securities issued by corporations whose business activities are "inconsistent" with socially responsible investing (SRI) criteria are excluded. This includes alcohol, tobacco, gambling, civilian firearms and military weapons.

The fund, which aims to track the Barclays MSCI Euro Area Liquid Corporates Sustainable index, is listed on the London Stock Exchange and has a total expense ratio of 0.2 per cent.

Andrew Walsh, head of UBS ETFs for UK and Ireland, said: “UBS ETFs recently passed $1bn (£800m) 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.”