UBS Asset Management’s S&P 500 ESG ETF reaches USD 1 billion

The first exchange-traded fund (ETF) to integrate a socially responsible investing filter to the S&P 500 equity index has passed the mark of USD 1 billion in assets under management. The landmark solidifies the UBS ETF S&P 500 ESG UCITS ETF as the largest ETF tracking the ESG version of the renowned index.

• The world's first ETF tracking the sustainable version of the renowned index is also the largest, surpassing the USD 1 billion landmark
• The ESG fund has outperformed the standard S&P 500 index since inception by more than 550 bps, and has also proven its resilience during the Covid-19 drawdown
• UBS AM is the second largest European provider of ESG ETFs, with USD 16 billion in AuM

The ETF enables investors to get similar exposure to the S&P 500 equity index, while enhancing its sustainability profile. It applies a ‘light green’ ESG screen by excluding around 25% of the market cap of the parent index based on various ESG criteria and can be seen as an ESG alternative to a core equity allocation within portfolios.

The performance of the index tracked by the fund has been impressive since its launch in March 2019. The cumulative outperformance of the S&P 500 ESG index in comparison to the S&P 500 index has reached 550 bps (equivalent to 350 bps per annum). Attribution results indicate that this outperformance is well diversified across sectors and primarily stems from the selection of higher ESG-rated companies. For a portfolio with an active share of 25%, covering broad US equities, it is a very solid investment outcome, highlighting the potential benefits of ESG investing.

The UBS S&P 500 ESG ETF was the first passive fund in the world that offered exposure to an ESG-screened version of the S&P 500 index, and therefore has the most established track-record in this category. It is also the largest fund tracking a sustainable version of the S&P 500 index globally. UBS AM was convinced from the start that investors wanted a sustainable option to invest in the S&P 500 index portfolio, since it is the most popular and renowned index in the world, tracked globally by passively-managed assets of USD 4.6 trillion.

Florian Cisana, Head of ETF & Passive Sales Strategic Markets EMEA at UBS Asset Management, said: "Over the last 10 years we’ve built a sustainable ETF product shelf tailored to meeting investors’ different needs. Our funds provide a range of ‘shades of green,’ offering clients the opportunity to select the best solutions for their portfolios. As investor demand for sustainable products continues to grow, the S&P 500 ESG ETF will remain an excellent option for those seeking an ESG solution for accessing this key US Equities portfolio building block.”

Reid Steadman, Global Head of ESG Indices at S&P Dow Jones Indices, said: “We are pleased to see investors quickly adopting the S&P 500 ESG index as the leading independent ESG benchmark for US equity. The strong demand for ESG index-based portfolios underscores our belief that investors will continue to integrate ESG values into the core of their investments.”

The UBS ETF S&P 500 ESG UCITS ETF is listed on four exchanges (SIX Swiss Exchange, Xetra, London Stock Exchange, Borsa Italiana) and offered in three currency-hedged share classes (EUR, CHF and GBP), as well as in the unhedged USD share class.

Key points at a glance

• The market for standard S&P 500 UCITS ETFs in Europe is approximately USD 130 billion.
• The ESG/SRI segment is the fastest growing theme in UCITS ETFs, now approaching USD 60 billion in assets.
• S&P 500 ESG Index targets sector neutrality vis-à-vis the S&P 500 Index and aims to deliver a tracking error below 100bps.
• S&P 500 ESG Index had 310 constituents, compared to the 505 constituents contained in the S&P 500 Index (July 2020).

Fund details:
Funds name	Nav Ccy.	Fee	ISIN	Bloomberg
UBS ETF (IE) S&P 500 ESG UCITS ETF	USD	0.12%	IE00BHXMHK04	S5SD GY
UBS ETF (IE) S&P 500 ESG (hedged to CHF) UCITS ETF	CHF	0.22%	IE00BHXMHN35	5ESGS SW
UBS ETF (IE) S&P 500 ESG (hedged to EUR) UCITS ETF	EUR	0.22%	IE00BHXMHQ65	S5SG GY
UBS ETF (IE) S&P 500 ESG (hedged to GBP) UCITS ETF	GBP	0.22%	IE00BHXMHR72	5ESG LN

Press contact:
Stampa
 Anke Claassen 
+ 32 (0)486 46 34 08
UBS@stampacommunications.com

About UBS Asset Management
Asset Management is a large-scale asset manager with a presence in 22 markets. It offers investment capabilities and investment styles across all major traditional and alternative asset classes to institutions, wholesale intermediaries and wealth management clients around the world. It is a leading fund house in Europe, the largest mutual fund manager in Switzerland, the second largest fund of hedge funds manager and one of the largest real assets investment managers in the world.

 

 

 

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The "S&P 500 ESG Index” is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and has been licensed for use by UBS AM. S&P® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by UBS AM. The UBS S&P 500 ESG ETF is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 ESG Index.