UBS J.P. Morgan EM Multi-Factor Enhanced Local Currency Bond UCITS ETF USD acc

What this fund is

UBS J.P. Morgan EM Multi-Factor Enhanced Local Currency Bond UCITS ETF USD acc is an exchange-traded fund (ETF) from UBS, traded under the ticker EMLOCA (ISIN LU1720938924). In a single purchase you get a diversified basket of holdings rather than a stake in just one business. In plain terms it is about lending to governments and companies in return for regular interest, which tends to be steadier than shares but grows more slowly, spread across its target market. Its largest holdings include SAGB 8 3/4 02/28/48 #2048, BNTNF 10 01/01/31 and MBONO 7 3/4 05/29/31.

Its biggest country exposures are ~4.7% South Africa, ~3.6% Mexico and ~1.1% Brazil. Funds like this are often used as the steadier, lower-swing part of a portfolio — the ballast that cushions the ups and downs of shares. Its ongoing charge (TER) is 0.4% a year — about €40 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 Luxembourg and UCITS-regulated, a European standard built to protect everyday investors and trades in USD.

Its price has swung about 7.4% over the past year — a gauge of how much the value moves, not a judgement of quality. It launched in 2019. 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.)