UBS Sustainable Development Bank Bonds UCITS ETF USD dis

What this fund is

UBS Sustainable Development Bank Bonds UCITS ETF USD dis is an exchange-traded fund (ETF) from UBS, traded under the ticker MDBU (ISIN LU1852212965). 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 0.15% a year — about €15 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 2.36% (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 USD.

Its price has swung about 5.8% over the past year, which describes how much its price tends to move rather than whether it is good. It launched in 2018. 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.)