UBS Sustainable Development Bank Bonds 5-10 UCITS ETF USD acc

What this fund is

UBS Sustainable Development Bank Bonds 5-10 UCITS ETF USD acc is an exchange-traded fund (ETF) from UBS, traded under the ticker MDB5 (ISIN LU2880762781). In a single purchase you get a diversified basket of holdings rather than a stake in just one business. 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. 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. 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 USD. Its price has swung about 22% over the past year, which describes how much its price tends to move rather than whether it is good.

It launched in 2024. 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.)