UBS ETF (IE) S&P 500 ESG Elite UCITS ETF (USD) A-dis
| Issuer: UBS |
| Asset Class: Equity |
| TER: 15bps |
| Trading Currency: GBX |
| Pays Income: False |
| Listing Date: 25 Feb 2025 |
| Ticker: S5ED |
| ISIN: IE00BLSN7N96 |
This fund offers a targeted investment approach for those seeking to align their portfolios with strong sustainability principles while maintaining exposure to the US large-cap equity market. It is designed to track the S&P 500 ESG Elite Index, which applies a stringent set of environmental, social, and governance (ESG) criteria to the well-known S&P 500 universe. The index construction process begins by excluding companies involved in controversial business activities, such as thermal coal, tobacco, and specific weapons manufacturing. It also removes companies that rank poorly based on the UN Global Compact principles or have low overall ESG scores, ensuring a baseline of responsible business conduct.
The 'Elite' designation stems from its rigorous 'best-in-class' selection methodology. After the initial exclusions, the index selects only the top 25% of companies in each GICS industry group based on their S&P DJI ESG Scores. This ensures that the portfolio is comprised of sustainability leaders within their respective sectors, maintaining broad industry diversification. This focused approach provides a more concentrated portfolio of ESG champions compared to broader market-cap-weighted ESG strategies. The physical replication method ensures direct ownership of the underlying securities, providing transparency into the fund's holdings.
This financial instrument is suitable for investors aiming to integrate a high-conviction ESG strategy into the core of their US equity allocation. By focusing on companies that demonstrate leadership in managing sustainability risks and opportunities, the fund aims to deliver long-term value and positive impact. It provides a means to invest in a portfolio of US large-cap companies that not only meet stringent negative screens but are also proactively leading their industries in sustainable practices, potentially offering enhanced risk management and resilience in a changing global landscape.
