UBS MSCI Switzerland 20/35 UCITS ETF hGBP acc (S2HGBz)

Overview

The UBS ETF MSCI Switzerland 20/35 Hedged GBP Accumulating is an innovative exchange-traded fund that seeks to provide both retail and institutional investors with a straightforward avenue to gain exposure to the Swiss equity market, while also mitigating currency risk for those investing with British pounds. By tracking the MSCI Switzerland 20/35 Index, this ETF leverages a capped, market-cap-weighted index approach to ensure a diversified exposure across a variety of sectors such as finance, healthcare, and consumer goods, without allowing any single company to dominate. The addition of a currency hedging strategy is designed to shield investors from the volatile fluctuations between the Swiss Franc and the British Pound, aiming to provide more stable returns. Furthermore, its accumulating structure allows dividends to be reinvested, encouraging the compound growth of investments. This product is a testament to UBS's commitment to offering accessible, cost-effective solutions for portfolio diversification, with the added benefit of currency risk management for investors looking towards Swiss equities.

Products and Services

• Exposure to Swiss Equity Market:

This ETF offers investors an efficient entry into the Swiss equity market, tracking the performance of the MSCI Switzerland 20/35 Index. This index favors a broad market representation by using a capped, market-cap-weighted methodology. Such an approach limits the impact of any single company, ensuring a balanced investment across leading sectors.

• Currency Hedging for GBP Investors:

Given the fund's hedging component, GBP investors are specifically protected from the exchange rate fluctuations between the Swiss Franc (CHF) and the British Pound (GBP). This strategy is crucial for investors looking to mitigate currency risk, potentially leading to more stable and predictable returns from their investments in Swiss equities.

• Accumulating Dividends:

Unlike traditional ETFs that may pay out dividends, this fund opts for an accumulating structure. This means that all dividends received from the underlying investments are automatically reinvested in the fund, promoting compounded growth over time. This feature is particularly appealing to long-term investors interested in leveraging the power of compounding.

• Cost-effective Portfolio Diversification:

By incorporating this ETF into their portfolios, investors can achieve a level of diversification that might be difficult or more costly to replicate through individual stock purchases. This ETF simplifies the process, offering a single, cost-effective investment that spans various sectors of the Swiss market, complemented by UBS's renowned financial expertise and comprehensive investment services.