Investment Opportunity: Global Small-Cap Stocks Through a Sustainable Exchange-Traded Fund (ETF)

UBS Launches Sustainable Small-Cap ETF

UBS Asset Management (UBS AM) has introduced a new Exchange-Traded Fund (ETF) that allows investors to consider social and environmental factors while investing in global small-cap securities. The UBS ETF (IE) MSCI World Small Cap Socially Responsible UCITS ETF is a unique product that aims to reduce its carbon footprint by nearly 40% compared to the benchmark.

The underlying portfolio of the UBS ETF undergoes a screening process that combines norms-based, values-based, and climate-related exclusions. This process is designed to invest in companies that meet certain sustainability criteria, as determined by the screening process. The ETF's goal is to improve its Environmental, Social, and Governance (ESG) score, which is a key indicator of a company's sustainability profile.

However, it's important to note that the new UBS ETF does not have a specified aim to qualify as an Article-8 product under the European Union's Sustainable Finance Disclosure Regulation (SFDR). Furthermore, the ETF does not have a specified benchmark for comparison, nor does it have a specified goal to reduce its carbon footprint or improve its ESG score.

Despite these ambiguities, the CEO of UBS Asset Management, Markus Diethelm, explains that the new ETF offers investors exposure to global small-cap values with a strong sustainability profile. Dag Rodewald, Head of ETF & Index Fund Sales Germany & Austria at UBS AM, further elaborates that the ETF is designed to provide investors with an opportunity to invest in global small-cap companies with a strong sustainability profile.

In conclusion, the UBS ETF is a product that aims to reduce its carbon footprint and improve its ESG score while providing investors with the opportunity to invest in companies with strong sustainability profiles from the MSCI World Small-Cap universe. While the specifics of the ETF's aims and processes may not be fully specified, its focus on global small-cap values with a strong sustainability profile makes it an attractive option for socially and environmentally conscious investors.

Investment Opportunity: Global Small-Cap Stocks Through a Sustainable Exchange-Traded Fund (ETF)