Global small-cap investment made eco-friendly with the introduction of the initial sustainable Exchange Traded Fund.

The financial world has seen a new addition with the launch of the UBS ETF MSCI World Small Cap Socially Responsible UCITS ETF. This innovative Exchange-Traded Fund (ETF) is the latest offering from UBS Asset Management Switzerland AG.

The UBS ETF aims to provide investors with exposure to global small-cap values that exhibit a strong sustainability profile. The underlying portfolio of the ETF is carefully selected from the MSCI World Small-Cap universe, ensuring a focus on companies with robust environmental, social, and governance (ESG) credentials.

To achieve this, the ETF employs a screening process that combines norm-based, values-based, and climate-related exclusions. This approach helps the ETF to qualify as an Article 8 product under the Sustainable Finance Disclosure Regulation of the European Union (SFDR).

The resulting ETF tracks the MSCI World Small Cap SRI Low Carbon Select 5% Issuer Capped Index. The underlying portfolio of the ETF aims to achieve a reduction in CO2 footprint of nearly 40% compared to the benchmark. Additionally, the portfolio aims to improve its ESG score, although relative to an unspecified benchmark.

Dag Rodewald, Head ETF & Index Fund Sales Germany & Austria at UBS AM, explains that the new ETF offers investors a unique opportunity to invest in companies with the strongest sustainability profiles from the MSCI World Small-Cap universe.

However, it's important to note that the ETF does not provide specific details about its carbon footprint reduction or improvement relative to a specific benchmark, nor does it mention its ESG score in the given information. Furthermore, the ETF does not appear to have any connection with the email button or the confirmation email activation process, nor does it offer any activation instructions within the context of the current paragraph.

Lastly, the ETF does not provide details about its data protection declaration, although, as of the information given, it does not appear to have been specified regarding its data protection declaration.

This new ETF is set to offer a compelling investment proposition for those seeking sustainable small-cap exposure, with its focus on companies with strong ESG profiles and a reduced carbon footprint. As more investors turn towards sustainable investing, the UBS ETF MSCI World Small Cap Socially Responsible UCITS ETF could be a promising addition to their portfolios.