UBS Global Asset Management has introduced an accumulating share class for its UBS MSCI World Socially Responsible UCITS ETF on Deutsche Börse’s Xetra and Frankfurt exchanges.
The ETF provides exposure to large and medium-sized companies from 23 developed market countries that have high ESG ratings, according to MSCI analytics.
The fund is part of a broader suite of ETFs provided by UBS that invest along socially responsible lines, aiming to generate investment returns consistent with the underlying market while also considering environmental, social and corporate governance concerns.
The methodology underpinning the suite includes a screen to exclude firms linked to alcohol, gambling, tobacco, weapons, pornography and genetically modified organisms.
The remaining companies then undergo an environmental, social and governance (ESG) assessment, which involves analysing each company’s ability to respond to ESG-related risks and opportunities through a granular break-down of its business segments.
The final weightings of the constituents within each index are derived through an optimization process that aims to maximise exposure to firms with poor scores while also providing adequate total market representation and sector diversification.
The ETF tracks the MSCI World Socially Responsible 5% Issuer Capped Index, comprising large and medium-sized companies from 23 developed market countries.
The US accounts for over half (54.9%) of the total index exposure, followed by Japan (8.3%), France (5.9%) and the UK (5.0%). The largest sector exposures are to information technology and financial services, collectively accounting for over a third (35.4%) of the index weight. Industrials (12.3%), consumer discretionary (12.2%) and health care (11.8%) are the next largest exposures. Microsoft is the largest constituent at 5.3% followed by Intel at 2.1%.
The new accumulating share class trades in euros under the ticker SEAC GR while the original distributing share class can be found using the ticker UIMM GR.
The fund is also available to trade on Borsa Italiana, Euronext Amsterdam, London Stock Exchange, and SIX Swiss Exchange. Its TER is 0.38%.