UBS AM Launches ESG Reweighting Commodity ETF

The UBS CMCI Commodity Transition SF UCITS ETF is classified as Article 6 and tracks the new UBS CMCI Sustainability Transition index.

"There is currently no standard methodology across the industry to assess commodities across their life cycle from an ESG perspective," the firm said. 

Franklin Templeton expands thematic ETF range in double launch

Incorporating expertise from sustainable investment analytics firm rfu, the index uses ESG factors for over 30 commodities across energy, agriculture and metals.

The model looks to integrate social and environmental risks from a production and utilisation perspective, as well as a commodity's country production mix using rfu's sovereign rating model.

Rize ETF launches circular economy enablers ETF

It also uses the UBS CMCI commodity futures rolling concept, which has been running for over 15 years, aiming to mitigate negative roll yield.

Listing on the London Stock Exchange, XETRA and SIX Swiss Exchange, the ETF has a total exchange ratio of 0.34%.

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