Swiss ETF issuer UBS Asset Management reported that its ETF MSCI World Socially Responsible Ucits ETF surpassed €1 billion in assets by the end of July, marking it the first time an ETF focused on ESG crossed €1 billion in Europe.
The procedure involves tracking down of the top 5 percent companies which follow the ESG criteria based on the index’s methodology and excluding the firms which have a negative impact socially or on the environment. The fund has a total expense ratio of 0.25 percent and provides access to the shares of companies in 23 countries at a lower cost.
Andrew Walsh, head of Passive & ETF specialist sales for UK and Ireland, UBS Asset Management, says, “This milestone represents a further confirmation of our commitment to meet the increasingly sophisticated need of investors.”
He went on to add that the European ETF firm prioritises the needs of its customers and assists them by providing innovative products and solutions which will help the customers achieve their investment and ESG goals.
UBS Asset Management is a market leader in Europe’s ESG ETF sector and has shown a growth in its assets in the first half of 2019.
The Company’s total asset under management (AUM) reached €17 billion, which is a seventy percent increase in comparison to the year 2018. The ETF firm has produced returns worth 19.7 percent from the time of its establishment to date.
According to reports, Equity instruments contribute to 84 percent of the total assets in the ESG ETF sector.
UBS Asset Management’s UBS ETF was listed in 2012. The company took seven years to reach €1 billion in assets. The firm’s top holdings include Microsoft, Disney, and Pepsi.