UBS lists new smart beta ETFs

UBS Global Asset Management has listed eight new smart beta exchange-traded funds (ETFs) on the London Stock Exchange to give investors exposure to systematic risk factors in US and Eurozone equities.

The smart beta ETFs use four risk factors – low volatility, value, quality and yield – which research has shown can outperform the market over time. The four factors are available for either US or Eurozone equities because UBS believes that avoiding currency movements helps the factors stand out, compared to a multi-currency portfolio. UBS head of ETF sales for the UK and Ireland, Andrew Walsh, commented: “Whether one chooses to call it ‘factor investing’, ‘smart beta’ or ‘alternative beta’, what is very clear is that this category continues to gain increased interest from investors who are looking beyond the traditional parameters of market cap-weighted benchmarks. We are starting to see a shift from a ‘core-satellite’ investment approach to a ‘core-factor-satellite’ approach.” All of the ETFs use physical replication and comply with the UCITS IV regulations.