Investment opportunity for globally diversified, eco-friendly small-cap stocks.

In a significant move towards sustainable investing, UBS Asset Management has launched the UBS ETF (IE) MSCI World Small Cap Socially Responsible UCITS ETF. This exchange-traded fund (ETF) offers investors the opportunity to gain exposure to global small-cap values, while ensuring their investments align with sustainability criteria.

The resulting ETF qualifies as an Article 8 product under the Sustainable Finance Disclosure Regulation of the European Union (SFDR), indicating a positive contribution to sustainable development.

The ETF's underlying index is a low carbon version of the MSCI World Small Cap Index. The underlying portfolio is designed to exclude companies that do not meet certain sustainability criteria, and it aims to achieve a reduction in carbon footprint of nearly 40% compared to the benchmark.

The ETF tracks the MSCI World Small Cap SRI Low Carbon Select 5% Issuer Capped Index, which means it focuses on companies with the strongest sustainability profiles from the MSCI World Small-Cap universe. This approach is supported by a screening that combines norms-based, values-based, and climate-related exclusions.

Dag Rodewald, Head of ETF & Index Fund Sales Germany & Austria at UBS Asset Management, commented on the launch, "We are committed to providing our clients with investment solutions that not only deliver financial returns but also contribute to a more sustainable future. This ETF is a testament to that commitment, offering investors the opportunity to invest in companies with strong sustainability profiles while still capturing the growth potential of the small-cap segment."

The manager of the UBS ETF is UBS Asset Management, a leading global asset manager with a strong track record in sustainable investing.

Investors who choose the UBS ETF can be confident that their investments are supporting companies with a strong sustainability profile, while also providing the opportunity to gain exposure to the growth potential of global small-cap values. The sustainability profile of the companies in the ETF's underlying portfolio is strong, and the underlying portfolio also aims to improve the ESG score.

With this launch, UBS Asset Management continues to expand its range of sustainable investment solutions, further strengthening its position as a leader in sustainable finance.