UBS Factor MSCI USA Low Volatility UCITS ETF hEUR acc

What this fund is

UBS Factor MSCI USA Low Volatility UCITS ETF hEUR acc is an exchange-traded fund (ETF) from UBS, traded under the ticker 0Y7F (ISIN IE00BWT3KJ20). It lets you buy a basket of holdings in a single trade, spreading your money across them rather than one company. In plain terms it is about owning small slices of companies, so you share in their growth when they do well — and their falls when they don't, spread across its target market. Rather than a manager picking stocks, it simply replicates the MSCI USA Low Volatility index — the passive, low-cost approach, and its largest holdings include COCA-COLA CO/THE, PROCTER & GAMBLE CO/THE and BERKSHIRE HATHAWAY INC-CL B. By geography it is weighted towards ~9.9% United States and ~1.1% Ireland.

By industry it concentrates most in ~4.2% Utilities and ~2.4% Consumer Staples. It is commonly used to tilt a portfolio towards one market, usually alongside broader, more global funds rather than on its own. Its ongoing charge (TER) is 0.21% a year — about €21 a year on a €10,000 holding, taken automatically from the fund. Income such as dividends is automatically reinvested inside the fund (an accumulating share class), so returns compound without you doing anything. It holds the underlying investments directly (physical replication); it is domiciled in Ireland and UCITS-regulated, a European standard built to protect everyday investors and trades in EUR.

Its price has swung about 9.6% over the past year, which describes how much its price tends to move rather than whether it is good. It launched in 2015. As with any investment, its value can go down as well as up, and past performance is not a guide to future results. (Fund data sourced from UBS.)