UBS Asset Management has listed an alternative beta ETF on the London stock exchange.
UBS ETF (IE) MSCI USA Select Factor Mix Ucuts ETF offers investors exposure to large, mid and small-cap US equities with a range of factor tilts built in.
The new ETF aims to track the price and yield performance of the MSCI USA Select Factor Mix Index.
The benchmark is an alternatively weighted index known as ‘factor tilts’, the constituents of which are weighted according to specific risk premia like value, quality, momentum, volatility, size and yield.
Based on the MSCI USA IMI Index, this multi-factor index captures large, mid and small-cap exposure across US equity markets.
Andrew Walsh, UBS head of passive and ETF specialist for sales it the UK and Ireland, said: 'Investors are increasingly seeing alternative beta as an important component of portfolios and assets in factor ETFs and ETPs now total more than $500 billion globally.'
He added that investors wil be able to gain access to US equities 'via an index which employs a set of factor-screens which aims to improve returns, reduce risk and enhance diversification.'