UBS AG, London Branch ETF (ESUS) Holdings & Expense Ratio

For informational purposes only. Not financial advice.

Quick Answer

UBS AG, London Branch (ESUS) has a 0.95% expense ratio and $28M in assets under management.

UBS AG, London Branch (ESUS) ETF — Price, Holdings & Analysis

ETF Overview

ESUS provides investors with a leveraged exposure to U.S. companies demonstrating positive Environmental, Social, and Governance (ESG) characteristics. The fund tracks the MSCI USA ESG Focus Index, which screens out companies involved in controversial activities like tobacco, controversial weapons, fossil fuel extraction, and thermal coal power generation. The index then optimizes for ESG exposure while maintaining a market-like risk profile. ESUS employs a 2x leverage factor, resetting quarterly, meaning it aims to deliver twice the daily percentage change of the underlying index. It is structured as an Exchange Traded Note (ETN), not an ETF. This structure introduces credit risk, as the fund's performance is linked to the creditworthiness of the issuer, UBS. Due to the leveraged nature and quarterly reset, ESUS is designed for short-term tactical trading rather than long-term investing. Investors seeking ESG exposure with leverage may find ESUS appealing, but should carefully consider the risks associated with leverage and the ETN structure.

Risk Metrics

ESUS carries several risks that investors should carefully consider. As a leveraged product with a 2x factor, it is inherently more volatile than a non-leveraged ETF. The fund's beta of 2.04 (3Y) indicates significantly higher sensitivity to market movements. The quarterly reset of the leverage factor can lead to performance drag, especially in volatile markets. The fund's expense ratio of 0.95% is relatively high, which can erode returns over time. Furthermore, as an ETN, ESUS exposes investors to the credit risk of UBS; if UBS were to default, investors could lose their investment. The fund's relatively small AUM of $0.03 billion could pose liquidity risks. Past performance does not guarantee future results.

Beta: 2.04

Expense Ratio

0.95%

Dividend Yield

0.00%

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UBS ETRACS CMCI Agriculture Total Return ETN (UAG) (Equity) — 0.65% expense ratio
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Questions & Answers

What is ESUS and what does it track?

ESUS is an Exchange Traded Note (ETN) issued by UBS AG, London Branch. It provides a leveraged bullish bet on the MSCI USA ESG Focus Index. This index is composed of large- and mid-cap U.S.

companies that exhibit positive Environmental, Social, and Governance (ESG) characteristics.

What is the expense ratio for ESUS?

The expense ratio for ESUS is 0.95%. This means that for every $10,000 invested in ESUS, $95 is deducted annually to cover the fund's operating expenses.

While there isn't a definitive category average for leveraged ESG ETNs, the expense ratio is relatively high compared to standard equity ETFs.

Is ESUS a good long-term investment?

ESUS is generally not considered a suitable long-term investment due to its leveraged nature and quarterly reset mechanism. The 2x leverage factor amplifies both gains and losses, leading to increased volatility.

The quarterly reset can also result in performance drag over extended periods, especially in choppy or declining markets.

How does ESUS compare to similar ETFs?

ESUS is unique due to its combination of ESG focus and 2x leverage within an ETN structure. Most ESG ETFs offer unleveraged exposure to socially responsible companies.

The ETN structure also differentiates ESUS from traditional ETFs, introducing credit risk related to the issuer, UBS. ESUS has a relatively small AUM of $0.03 billion.

Does ESUS pay dividends?

According to the available data, ESUS has a dividend yield of 0.00%. This indicates that the fund does not currently distribute any dividend income to its investors.

The fund's focus is on providing leveraged exposure to the price movements of the MSCI USA ESG Focus Index, rather than generating dividend income. Investors seeking dividend income may want to consider other ETFs that prioritize dividend payouts.

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

Data provided for informational purposes only.

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