UBS Makes Smart Beta ETF Push

UBS Global Asset Management has launched eight smart beta exchange traded funds (ETFs) tracking U.S. and Eurozone equities, offering investors more ways to target portfolio returns.

The risk factors underlying these funds are “prime value”, low volatility, quality and “total yield” and follow indexes developed my MSCI. The physical ETFs range from annual fees of 0.25 percent for U.S. equities to 0.28 percent for European equities.

Andrew Walsh, head of UBS ETF sales UK and Ireland, said in a statement that however you choose to define the category of smart beta, investors’ interest is growing.

“These eight new ETFs directly reflect our clients' need for key factor exposures available at regional level,” he said.

The funds list in London and Germany today.

UBS has launched various ETFs this year including a GBP-hedged commodity ETF, a EUR-hedgd U.S. corporate bond ETF and sustainable funds covering Japanese equities and U.S. corporate debt. The provider now has over 126 ETFs with more than 5 percent of market share in Europe.

Smart beta flows turned negative in August for the first time in a 12 month period, according to Lyxor data, as investors instead piled into mainstream equity markets.