UBS J.P. Morgan EMU Gov ESG Liquid Bond UCITS ETF EUR acc

What this fund is

UBS J.P. Morgan EMU Gov ESG Liquid Bond UCITS ETF EUR acc is an exchange-traded fund (ETF) from UBS, traded under the ticker ESGEMU (ISIN LU2194286006). 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 FEDERAL REPUBLIC OF GERMANY BOND FIXED 2.9% 15/FEB/2036 EUR 0.01, FRTR 1 3/4 06/25/39 and DBR 2.3 02/15/33.

Its biggest country exposures are ~7.1% Germany and ~0.9% France. Its heaviest sectors are ~8% 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 0.17% a year — about €17 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 EUR. Its price has swung about 3.4% over the past year, which describes how much its price tends to move rather than whether it is good. 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.)