UBS Factor MSCI EMU Low Volatility UCITS ETF EUR dis

What this fund is

UBS Factor MSCI EMU Low Volatility UCITS ETF EUR dis is an exchange-traded fund (ETF) from UBS, traded under the ticker UD02 (ISIN LU1215454460). 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. It passively tracks the MSCI EMU Low Volatility index — mirroring that market instead of paying a manager to pick winners, which keeps costs low, and its largest holdings include KONINKLIJKE KPN NV, IBERDROLA SA and NORDEA BANK ABP. Geographically it leans ~4.5% Finland, ~4.3% Spain and ~4.2% Belgium.

By industry it concentrates most in ~8.7% Financials and ~8.3% Utilities. Funds like this are commonly chosen by investors who want a regular cash income stream rather than reinvesting everything for growth. Its ongoing charge (TER) is 0.25% a year — about €25 a year on a €10,000 holding, taken automatically from the fund. Income such as dividends is paid out to you as cash (a distributing share class), and over the last year it paid out roughly 5.03% (its trailing yield). It holds the underlying investments directly (physical replication); it is domiciled in Luxembourg 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. Like any investment, it can lose value as well as gain, and what it did before does not predict what it will do next. (Fund data sourced from UBS.)