New ETF: Global Green Bonds

UBS allows exposure to green bonds worldwide with strict ratings, a limit on certain currencies and a remaining maturity of up to ten years.

12 June 2023. FRANKFURT (Börse Frankfurt). A new exchange-traded fund from UBS Asset Management has been tradable on Xetra and via the Frankfurt Stock Exchange since Monday.

The UBS ETF (LU) Global Green Bond ESG 1-10 UCITS ETF gives investors access to the global bond market for green bonds. Green bonds have the special feature that they are used exclusively to finance sustainable projects or companies.

Only bonds that are denominated in USD, EUR, GBP, SEK, CAD or AUD, have a fixed coupon and a remaining maturity of one year to ten years are considered. In addition, these bonds must have an MSCI ESG rating of at least BBB. The weighting of an issuer is limited to three percent.

Issuers involved in business with weapons, alcohol, tobacco or in the development of oil deposits and oil production and extraction are filtered out.

The product offering in Deutsche Börse's XTF segment currently comprises a total of 2,046 ETFs. With this selection and an average monthly trading volume of around €19 billion, Xetra is the leading trading venue for ETFs in Europe.

12 June 2023, © Deutsche Börse AG