UBS Asset Management has partnered with MSCI to launch a global small cap socially responsible investing (SRI) ETF.
The UBS ETF MSCI World Small Cap Socially Responsible UCITS ETF (WSCR) is listed on the London Stock Exchange, Deutsche Boerse, Borsa Italiana and the SIX Swiss Exchange with a total expense ratio (TER) of 0.23%.
WSCR tracks the newly created MSCI World Small Cap SRI Low Carbon Select 5% Issuer Capped index which offers exposure to global small cap companies with strong ESG credentials.
The index uses a best-in-class ESG approach by selecting the top 25% of highest rated ESG stocks within each sector from the MSCI World Small Cap index.
It also excludes companies involved in tobacco, controversial weapons, thermal coal, oil and gas and high emitters as well as United Nations Global Compact violators.
WSCR is classified as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR).
Clemens Reuter, (pictured) global head of ETF and index fund client coverage at UBS AM, commented: “This latest solution provides investors with the opportunity to gain global developed small cap exposure, together with a strong sustainability profile.”
The launch comes one month after the Swiss asset manager unveiled a suite of five ESG ETFs tracking newly created MSCI indices which apply larger exclusions and remove the 5% highest carbon emitters of the respective parent index.
They are:
UBS ETF MSCI ACWI ESG Universal Low Carbon Select UCITS ETF (AWESG)
UBS ETF MSCI Emerging Markets ESG Universal Low Carbon Select UCITS ETF (EMESG)
UBS ETF MSCI EMU ESG Universal Low Carbon Select UCITS ETF (EUESG)
UBS ETF MSCI Europe ESG Universal Low Carbon Select UCITS ETF (EESGA)
UBS ETF MSCI Japan ESG Universal Low Carbon Select UCITS ETF (JPESG)
UBS ETF MSCI USA ESG Universal Low Carbon Select UCITS ETF (USESGA)
