UBS Sustainable Development Bank Bonds UCITS ETF hGBP dis

What this fund is

UBS Sustainable Development Bank Bonds UCITS ETF hGBP dis is an exchange-traded fund (ETF) from UBS, traded under the ticker MDBG (ISIN LU1852212023). 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. By geography it is weighted towards ~25.6% United States.

By industry it concentrates most in ~25.6% 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 a distributing share class — dividends are paid to you as cash rather than reinvested, and over the last year it paid out roughly 3.41% (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 GBP.

Its price has swung about 3% over the past year — a gauge of how much the value moves, not a judgement of quality. It launched in 2020. 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.)