New UBS ETF on Xetra: access to the global fixed income market for green bonds

Since Monday, a new exchange-traded fund issued by UBS Asset Management has been tradable on Xetra and via Börse Frankfurt.

The UBS ETF (LU) Global Green Bond ESG 1-10 UCITS ETF gives investors access to the global green bond market. Green bonds have the special feature that they are used exclusively to finance sustainable projects or companies.

Only bonds that are denominated in USD, EUR, GBP, SEK, CAD or AUD, have a fixed coupon and a remaining maturity of one year to ten years are taken into account. In addition, they must have an MSCI ESG rating of at least BBB. The weighting of an issuer is limited to three per cent.

Issuers involved in business with weapons, alcohol, tobacco or in the development of oil deposits, and oil production and extraction are filtered out. 

The product offering in Deutsche Börse's XTF segment currently comprises a total of 2,046 ETFs. With this selection and an average monthly trading volume of around €19 billion, Xetra is the leading trading venue for ETFs in Europe.