UBS Asset Management introduces Treasury Yield Plus Exchange-Traded Funds
UBS Asset Management Launches Two High-Yield ETFs
In a move to cater to the growing demand for funds that go beyond traditional passive benchmarks, UBS Asset Management (UBS AM) has announced the launch of two Exchange-Traded Funds (ETFs). These new offerings, one euro-denominated and one dollar-denominated, mark the first time UBS AM is offering its rules-based strategies in the form of an ETF.
UBS AM, with its longstanding expertise in rules-based strategies, aims to enhance access to a larger opportunity set for clients. Each ETF starts with its respective Bloomberg Treasury Index (EUR or USD) and expands the investment universe. A proprietary rules-based model is used to broaden the investment universe, including high-quality sovereign, supranational, and agency bonds.
The ETF wrapper provides a convenient, transparent, and efficient way for clients to access UBS AM's rules-based strategies. The funds aim to outperform their respective Bloomberg Treasury indexes by targeting higher option-adjusted spread. This strategy could potentially offer a higher yield than government bonds.
Despite the expanded opportunity set, both ETFs maintain tight alignment on duration, credit quality, and country exposure, ensuring a risk profile similar to that of their underlying treasury indexes. André Mueller, Head of Client Coverage at UBS AM, has stated that these new ETFs are designed to deliver enhanced yield while preserving the risk profile of their underlying treasury indexes.
The funds are registered for sale in multiple European countries, including Austria, Denmark, Finland, France, Germany, Ireland, Italy, Liechtenstein, Luxembourg, Netherlands, Norway, Spain, Sweden, Switzerland, and the United Kingdom. This wide availability is a testament to UBS AM's commitment to making its rules-based strategies accessible to a wider range of clients.
In conclusion, UBS Asset Management's launch of these two high-yield ETFs represents a significant step in offering innovative investment solutions to clients seeking to go beyond traditional passive benchmarks. With their potential for higher yields and maintained risk profiles, these ETFs are poised to become attractive options for investors.
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