UBS Launches ‘ESG Elite’ Dividend Aristocrats ETFs Targeting Sustainable Dividends

Share post:

UBS Asset Management has introduced a new suite of income-focused exchange-traded funds (ETFs) called the ‘Dividend Aristocrats ESG Elite’ ETFs. These ETFs aim to provide exposure to global developed and US equity markets while focusing on sustainable dividends and strict environmental, social, and governance (ESG) criteria.

The first fund in the suite, the UBS ETF (IE) S&P Dividend Aristocrats ESG Elite UCITS ETF (GLDVD), was created by repurposing an existing UBS global dividend ETF. The fund had approximately $200 million in assets during its conversion and carries an expense ratio of 0.30%. The second fund, the UBS S&P USA Dividend Aristocrats ESG Elite UCITS ETF (USDVD), is a new addition with an expense ratio of 0.40%.

These ETFs are listed for trading on the SIX Swiss Exchange, Deutsche Börse Xetra, and Borsa Italiano. Additionally, they are classified as Article 8 products under the European Union’s Sustainable Finance Disclosure Regulation (SFDR).

The funds are linked to socially responsible versions of the well-known ‘Dividend Aristocrats’ index strategy developed by S&P Dow Jones Indices. Dividend aristocrats are companies that have maintained or increased their dividend payments for a specified number of years. The investment thesis behind this strategy is that such companies may provide sustainable income and demonstrate favorable fundamental characteristics like consistent operating earnings, steady cash flow growth, and corporate discipline in challenging market conditions.

The global Dividend Aristocrats index includes companies that have consistently maintained or increased dividends for at least ten years, while the US index targets firms with a 20-year track record of consistent dividend growth. Companies with dividend yields above 10% are excluded to avoid potential dividend traps.


Maintain Your Horses! A Space Bitcoin ETF May perhaps well also Already Be Priced into Crypto.

There is a growing belief that the recent price surge in bitcoin could already factor in the potential approval of a spot Bitcoin ETF- a pivotal strategic investment move that holds significant influence in the crypto market. Investors and financial enthusiasts alike are keenly awaiting regulatory approval, a decision that could potentially catalyze the future growth trajectory of bitcoin prices. This speculation underscores not only the potential value that bitcoin holds as a digital asset but also the evolving role of institutional reactiveness in the cryptocurrency landscape.

Tim Draper’s Bold Prediction: Bitcoin (BTC) Price Set to Skyrocket to $250K!

In the world of finance, Bitcoin is increasingly recognized as a transformative force. With the potential to challenge...

Bitcoin ETF: Navigating the Perils of SEC Rejection and Fierce Opposition from Funds

A recent court order has directed the Securities and Exchange Commission (SEC) to reconsider its denial of Grayscale's...

Nike’s Shocking 10% Plunge: Sales Outlook Slashed

Nike, a leading athletic apparel⁢ company, ⁣recently announced plans to reduce costs by $2 ‍billion over the next...