UBS Asset Management has unveiled a global corporate bond ETF, which will utilise an ESG filter to integrate sustainability into credit markets.
The UBS ETF Bloomberg Barclays MSCI Global Liquid Corporates Sustainable UCITS ETF will track the Bloomberg Barclays Global Aggregate Corporates index.
It will offer exposure to over 320 corporate issuers, filtering out those with inadequate scores on a sustainability rating criteria.
UBS AM head of UBS passive and ETF specialist sales for the UK and Ireland Andrew Walsh said: “We have seen how ESG ETFs outperformed their ‘standard’ peers during the volatility caused by the coronavirus pandemic and investors are increasingly demanding sustainability aspects to products.
“With this launch, we are able to provide a core ESG exposure based on a significant and widely used portfolio building block that caters to clients’ needs.”
Notably, last week, UBS raised $440m for Rockefeller Asset Management’s Global Environmental, Social and Governance (ESG) Equity fund.
The fund incorporates the ‘ESG improvers’ approach, offering exposure to companies that are improving their performance on material ESG issues.
In another recent development, UBS decided to offer its wealthy customers in the US the choice to invest in zero management fee equities and fixed-income strategies managed by third-party asset managers.