A new Exchange-Traded Fund (ETF) concentrates on eco-friendly investments for small businesses worldwide.

In a move towards sustainable investing, UBS Asset Management has introduced a new Exchange-Traded Fund (ETF) that targets companies with strong sustainability profiles from the MSCI World Small-Cap universe. The UBS ETF MSCI World Small Cap Socially Responsible UCITS ETF aims to provide exposure to global small-cap values while reducing its carbon footprint and improving its Environmental, Social, and Governance (ESG) score.

The new ETF, explained by Dag Rodewald, Head of ETF & Index Fund Sales Germany & Austria at UBS Asset Management, is designed to align with the growing demand for sustainable investments. Rodewald stated, "This ETF offers investors exposure to global small-cap values with a strong sustainability profile."

The ETF's underlying portfolio is expected to have a lower carbon footprint compared to the benchmark, aiming for a reduction of nearly 40%. Additionally, the portfolio is anticipated to have an improved ESG score compared to the benchmark. These ESG characteristics qualify the ETF as an Article-8 product under the European Union's Sustainable Finance Disclosure Regulation (SFDR).

The ETF employs a screening process that combines norm-based, values-based, and climate-related exclusions. However, the specific screening process, underlying portfolio, or benchmark of the ETF are not explicitly specified. Furthermore, information about the expected carbon footprint or ESG score improvements of the ETF's underlying portfolio is not available.

It is worth noting that the new ETF does not have information about its tracking of a specific index. Despite this, the ETF tracks the MSCI World Small Cap SRI Low Carbon Select 5% Issuer Capped Index, although this is not mentioned in the provided details.

The company behind the development of the UBS ETF MSCI World Small Cap Socially Responsible UCITS ETF is UBS Asset Management. However, the current Head of ETF & Index Fund Sales Germany and Austria at UBS Asset Management could not be identified in the provided search results.

In conclusion, the UBS ETF MSCI World Small Cap Socially Responsible UCITS ETF provides an opportunity for investors to invest in companies with the strongest sustainability profiles from the MSCI World Small-Cap universe while reducing its carbon footprint and improving its ESG score. While some details about the ETF are not explicitly stated, its focus on sustainability and small-cap values makes it an attractive option for those seeking sustainable investment opportunities.