UBS ESG ETF hits £2 billion as sustainable investing surges globally

The UBS MSCI ACWI Socially Responsible ETF has reached £2 billion in assets under management. This growth reflects the rising importance of sustainability in global investing. The fund follows strict environmental, social, and governance (ESG) standards to select its holdings. The ETF tracks the MSCI ACWI SRI Low Carbon Select Index, which focuses on companies excelling in environmental stewardship, social responsibility, and corporate governance. No single issuer in the index can exceed a 5% weighting, ensuring diversification.

The fund uses a physical replication strategy, meaning it directly invests in the index's constituent stocks. Its total expense ratio stands at 0.28% per year, though the GBP-distributing share class carries a slightly higher fee of 0.33%. Performance has been strong in recent months. The currency-hedged USD tranche of the ETF delivered a 6.48% gain over the past six months.

With £2 billion in assets, the ETF continues to attract investors seeking ESG-compliant options. Its low-carbon focus and strict selection criteria align with growing demand for responsible investment choices. The fund's structure and performance suggest it remains a key player in sustainable finance.