UBS launches alternative beta ETF

US-USA-America-Rally-Flag-700.jpgUBS Asset Management has launched an alternative beta ETF using factor strategies and tracking the MSCI USA Select Factor Mix Index.

The fund, which has a charge of 0.3 per cent, will invest in large, mid and small-cap US equities.

The UBS MSCI USA Select Factor Mix ETF has a benchmark of an alternatively weighted index which includes factors such as value, quality, momentum, volatility, size and yield.

UBS head of passive and ETF Specialist Sales UK and Ireland Andrew Walsh says: “Investors are increasingly seeing alternative beta as an important component of portfolios and assets in factor ETFs and ETPs now total more than $500bn globally.

“This new ETF allows investors to gain access to US equities via an index which employs a set of factor screens that aims to improve returns, reduce risk and enhance diversification.”