UBS Asset Management has launched two ETFs that aim to deliver enhanced yield, while preserving the risk profile of their underlying treasury indexes.
The euro and dollar denominated Ucits ETFs aim to outperform their respective Bloomberg Treasury indexes by targeting higher option-adjusted spread, while maintaining tight alignment on duration, credit quality, and country exposure.
Each ETF starts with its respective Bloomberg Treasury Index (EUR or USD) and expands the opportunity set to include high-quality sovereign, supranational, and agency bonds, which can offer a higher yield than government bonds.
A proprietary rules-based model is used to broaden the investment universe to enhance access to a larger opportunity set
André Mueller, Head of Client Coverage, UBS AM, said: “The rapidly increasing assets in enhanced fixed income ETFs signals growing investor demand for funds that go beyond traditional passive benchmarks.
“UBS AM has longstanding expertise in rules-based strategies so I’m delighted we can offer this capability, for the first time, to a wider range of clients through the convenient, transparent and efficient ETF wrapper.”
The fund is registered for sale in Austria, Denmark, Finland, France, Germany, Ireland, Italy, Liechtenstein, Luxembourg, Netherlands, Norway, Spain, Sweden, Switzerland, and the United Kingdom.
