UBS Sustainable Development Bank Bonds UCITS ETF hEUR acc

What this fund is

UBS Sustainable Development Bank Bonds UCITS ETF hEUR acc is an exchange-traded fund (ETF) from UBS, traded under the ticker MDBE (ISIN LU1852211991). 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 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. Geographically it leans ~25.5% United States.

By industry it concentrates most in ~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. It is an accumulating share class: dividends are rolled straight back in, compounding your returns rather than landing in your account as cash. 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 2.4% 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.)