UBS Sustainable Development Bank Bonds UCITS ETF hCHF acc

What this fund is

UBS Sustainable Development Bank Bonds UCITS ETF hCHF acc is an exchange-traded fund (ETF) from UBS, traded under the ticker MDBC (ISIN LU1852211561). One trade buys a whole basket of holdings, so your money is spread out instead of riding on a single company. 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 EBRD 4 1/8 01/25/29, EBRD 4 3/8 03/09/28 and IADB 4 1/2 02/15/30. By geography it is weighted towards ~25.5% United States.

Its heaviest sectors are ~25.5% Government. 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 0.18% a year — about €18 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 CHF.

Its price has swung about 3.1% over the past year, which describes how much its price tends to move rather than whether it is good. It launched in 2019. 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.)