Overview: The UBS Core BBG US Liquid Corp UCITS ETF hEUR acc is an exchange-traded fund that aims to replicate, before fees, the price and income performance of the Bloomberg Barclays US Liquid Corporates™ index. This ETF primarily invests in liquid US corporate bonds, thus providing exposure to a segment of the bond market. Additionally, the currency-hedged share classes seek to mitigate the impact of currency fluctuations by using currency futures.
Benefits: This ETF has several strengths, including its ability to offer diversified exposure to US corporate bonds, which can contribute to portfolio stability. The currency hedging strategy also helps reduce the risk associated with exchange rate fluctuations, which is particularly advantageous for European investors. Furthermore, the liquidity of the underlying securities can facilitate access to this market for investors.
Risks: Like any investment in bonds, this ETF is subject to interest rate risks, meaning that the value of the bonds may decrease if interest rates rise. Additionally, the overall volatility of the bond markets can affect the ETF's performance. Currency fluctuations can also impact returns, even with hedging in place.
Investor Profile: This ETF is suitable for investors looking to diversify their portfolio with US corporate bonds while minimizing currency risk. It is particularly well-suited for investors seeking stable, long-term exposure in the bond sector, while being aware of the risks associated with this asset class.
Total Annual Returns, Including Dividends
The drawdown measures the decline in price from its historical high. It helps assess the fund's downside risk. The calculation includes dividends.
| Volatility | Max drawdown | Sharpe ratio | |
|---|---|---|---|
| 1 year | |||
| 3 years | |||
| 10 years | |||
| Max |