UBS Asset Management has launched a new UCITS ETF which provides commodities exposure while integrating ESG risks.

The UBS CMCI Commodity Transition SF UCITS ETF tracks an index that re-weights the underlying commodities based on their respective ESG risks and opportunities. The UBS CMCI Sustainability Transition Index also uses the long-standing UBS CMCI commodity futures rolling concept which helps to mitigate negative roll yield.

UBS has partnered with the sustainable investment research specialist rfuabout rfu to produce the ETF whose methodology evaluates the current and future relevant ESG factors of more than 30 commodities across energy, agriculture and metals. The model considers social and environmental risks at the commodity level and a commodity’s country production mix through rfu’s sovereign rating model. The new ETF is aligned with SFDR Article 6.

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