iShares MSCI EM SRI UCITS ETF USD (Dist) (SEMD)

Overview

UBS ETF (CH) MSCI Switzerland hedged to USD (USD) A-dis is a Swiss-domiciled exchange-traded fund (ETF) that tracks the MSCI Switzerland (USD Hedged) index. This fund is designed to provide investors with exposure to leading Swiss stocks, focusing primarily on large- and mid-cap companies, while mitigating currency risk to the US Dollar through the use of derivatives. This strategy effectively minimizes the effects of fluctuations in the Swiss Franc for USD-based investors. The ETF was launched on 31 October 2013 and employs full physical replication by holding all 42 constituents from its index.

The top holdings of this ETF include Nestlé SA (13.32%), Novartis AG (13.19%), and Roche Holding AG (12.54%), collectively representing about 70.93% of the portfolio. Sector allocations highlight key areas of the Swiss economy with significant emphasis on Health Care (32.78%), Financials (21.40%), and Consumer Staples (15.25%). Nearly 95% of the fund's assets are invested in Swiss companies, making it an essential tool for those seeking exposure to the stability and performance of the Swiss equity market. With a low total expense ratio of 0.23% per annum and assets under management totaling EUR 410 million, the ETF also distributes dividends to investors on an annual basis. This ETF plays a significant role for international portfolios by providing diversified exposure to the Swiss equity market without the associated currency volatility.

Products and Services

• Exchange-Traded Fund (ETF)

  This ETF offers exposure to the MSCI Switzerland Index while hedging currency risks associated with fluctuations in the Swiss Franc. Investors can buy and sell shares throughout the trading day, providing flexibility and liquidity.

• Hedging Strategy

  The ETF utilizes derivatives to hedge against currency risk, specifically protecting USD investors from the volatility of the Swiss Franc, thereby making returns more predictable for USD-based portfolios.

• Physical Replication

  By holding all 42 constituents of the MSCI Switzerland Index, the ETF employs full physical replication. This method ensures that the fund's performance closely tracks that of its benchmark index.

• Low Total Expense Ratio

  With a total expense ratio of only 0.23% per annum, this ETF offers cost-effective exposure to Swiss equities, allowing investors to retain more of their returns.

• Annual Dividend Distribution

  Investors benefit from annual dividend distributions, providing a potential income stream alongside capital appreciation associated with equity market growth.

• Sector Diversification

  The ETF's holdings are concentrated mainly in health care, financials, and consumer staples, thereby giving investors diversified exposure to key sectors of the Swiss economy.