UBS has launched what it claims to be the first currency-hedged ETF to track the MSCI Europe index on the London Stock Exchange.
The sterling-denominated Ucits fund will track a key benchmark of European stock market activity and aims to capture both mid and large-cap firms across 15 European markets. It will have a total expense ratio of 0.30%.
The MSCI index covers around 85% of the publicly available shares in the European developed markets equity space and is comprised of nearly 450 constituents.
Andrew Walsh, UBS’s head of passive and ETFs for UK & Ireland, said investors were increasingly keen to participate in foreign-denominated investments, but wanted to limit exposure to potential currency fluctuations.
“Going forward, we expect to see continued interest from our clients for products with embedded currency hedging,” he added.
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