UBS Global Asset Management has launched six new ETFs that track MSCI indices which screen out tobacco and 'controversial weapons'.
The new ETFs are aimed at investors – including institutions, retail investors and SMSF trustees – who are looking for access to international and Australian markets with an ethical tilt, a statement issued by the asset manager said.
UBS Global Asset Management head of Australia and New Zealand Bryce Doherty said: “These funds have been brought to market in response to continued demand from clients, advisers and institutions for access to global index-based investment solutions with an ethical philosophy.”
“For the SMSF market, which is now worth around $520 billion with 550,000 contributors, ETFs provide investors with an ability to take control of their investments, lower the cost of investing and improve diversification of their portfolios,” Mr Doherty said.
Self-managed super holders are increasingly demanding control and flexibility over their investments, Mr Doherty told InvestorDaily.
“The hypothesis from that is that these people are more engaged with their super and more interested in what it is that they’re investing in.”
“As a result, there is a cohort of them that are very keen to have that ethical overload with their portfolios,” he said.
According to UBS, the Australian ETF market has grown by 50 per cent throughout 2014, meaning that it has roughly tripled since 2010.
“UBS IQ ETFs can be used by a variety of investors including institutions, SMSF and retail investors who are looking to gain access to a diversified portfolio of global equities or access to specific global markets (including Europe, US, Asia and Japan) in one simple transaction,” Mr Doherty noted.
The new funds are listed as: UBS IQ MSCI Australia Ethical ETF (UBA), UBS IQ MSCI World ex-Australia Ethical ETF (UBW), UBS IQ MSCI Europe Ethical ETF (UBE), UBS IQ MSCI USA Ethical ETF (UBU), UBS IQ MSCI Japan Ethical ETF (UBJ), and UBS IQ MSCI Asia APEX 50 Ethical ETF (UBP).