UBS Launches Socially Responsible Japan ETF

UBS Launches Socially Responsible Japan ETF

The physically replicating fund costs 0.40 percent per year  

Editor, Europe
Reviewed by: Rachael Revesz
Edited by: Rachael Revesz

UBS Global Asset Management has launched an exchange traded fund (ETF) that focuses on Japanese companies with high standards of social responsibility, adding to the breadth of so-called environmentally friendly funds for investors.

The UBS MSCI Japan Socially Responsible UCITS ETF (JPY) (ticker JPSR) physically replicates an index which screens out certain companies that don’t meet certain environmental, social and corporate governance (ESG) criteria. The index also positively screens for those companies that have the highest ESG ratings in their sectors.

The fund has an annual total expense ratio (TER) of 0.40 percent and currently has around £7 million in assets under management. There are six other ESG ETFs in the UBS range, covering global, emerging markets, European, pacific and UK equities, and have a total AUM of £265 million.

Andrew Walsh, head of UBS ETF sales UK and Ireland said that investors are increasingly looking at companies whose business activities are in harmony with social values.

“It follows that deciding to invest in a sustainable way isn’t about following a trend. On the contrary, the investment decision is primarily about striving for long-term values and sustainability,” he said.

The launch follows a similar move by Deka, whose new ETF tracks ESG-rated European companies and also has a TER of 0.40 percent.



Rachael Revesz joined in August 2013 as staff writer. Previously an investment reporter at Citywire, she has a background in writing content for retail financial advisors and has covered a wide range of subjects in finance. Revesz studied journalism at PMA Media, which has since merged with the Press Association. She also holds a B.A. in modern languages from Durham University, as well as CF1 and CF2 financial planning certificates from the CII.