UBS ETF offers access to US large caps with currency hedging
UBS Asset Management’s UBS ETF (IE) S&P 500 hedged GBP UCITS ETF has listed on London Stock Exchange.
This latest addition to the UBS ETF product suite offers investors the opportunity to invest in an ETF that physically replicates the performance of the S&P 500 with the benefit of embedded currency hedging in British Pounds.
The purpose of the currency hedge is to mitigate the effect of fluctuations in an investor's home currency versus that which they are exposed to when in investing in foreign assets in another currency.
The fund invests in stocks contained in the S&P 500 Index. The relative weightings of the companies correspond to their weightings in the underlying index.
Andrew Walsh, head of UBS ETF sales UK & Ireland, says: “This latest addition to UBS's suite of currency-hedged ETFs offers investors access to what is regarded as the pre-eminent gauge of US large-cap equities with the added benefit of embedded GBP-hedging. We are seeing ever increasing demand from clients for currency hedged share classes at a time when global currency volatility remains a major concern for investors. The launch of our S&P 500 hedged GBP ETF is particularly timely given recent events in the US and we would expect to see this product gain a fair amount of interest."