Investing in a UBS ETF? The essentials to understand

Here are the essentials to understand in order to invest in a UBS ETF. Is it a good or bad investment? We will analyze this topic in this article.

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The purpose of holding a stock market product UBS?

🔍 The goal of owning a UBS mutual fund is to build a diversified stock portfolio with passive management.

In this way, a shareholder can grow his money with several stocks on the stock market combined in a single ETF. Note that an ETF is also known as a Tracker.

For example, the UBFCA ETF makes it possible to replicate the SP500 stock market index with passive management.

Thus, the investor benefits from a diversified stock portfolio according to the performance of the chosen strategy.

The UBS reputation

In many countries around the world, there is the possibility to choose an ETF from the investment company UBS. It is worth noting that UBS ETFs are renowned worldwide. But mainly in Switzerland.

Note that UBS is originally a Swiss bank.

In this article I give my opinion along with research data.

⚠️ This article is not investment advice. It is only my opinion. Please note that investing can cause money losses.❕

One of the largest stock investment funds in the world 💪

Investment fund size

👍

According to the netinvestment site¹. The investment fund UBS is the 3rd largest investment fund in the world! With over $3 trillion in assets 👍

The fact that UBS is a large investment fund is reassuring. Indeed, this factor reduces the chances that UBS will be bought by another investment fund.

A minimal TER 💲

TER

👍

If you want profitability in an ETF, it is mandatory that the TER (investment fund commission) is minimal.

⚠️ Until 2023, the majority of ETFs offered by UBS were too expensive regarding management fees. On the other hand, UBS lowered the TER of the majority of ETFs in early 2024 😊

Making UBS ETFs more interesting. Here are 3 examples:

SPI (Swiss Stock Market) – 0.10%
MCSI USA (US stock market) – 0.07%
MCSI World (developed countries) – 0.10%

Note that these commissions are very correct.. In reality, these commissions are comparable to the prices of Vanguard or iShares 😉

Performance 📈

Performance compared to the stock index

👌

Let's compare 2 ETF's to analyze performance over a period of 5 years.

Let's start by analyzing an ETF that replicates the Swiss stock market. The SPI ETF.

SPI UBS = 15.07% (March19 to March24)
iShares SPI = 15.36% (Mar19 to Mar24)

In this case, despite the ETF strategy being similar, SPI iShares has outperformed by 0.29% in 5 years.

Now, let's compare a strategy that replicates the SP500. The US stock market.

UBS UC04 – 98.59% (March 19 to March 24)
Vanguard SUV – 99.91% (Mar19 to Mar24)

In this case, there is approximately 0.65% gained with Vanguard.

In summary, although the UBS ETF tracks the stock index, in both cases the shareholder loses a small percentage of performance😶

The dividends 💲

Distribution of Dividends

👎

UBS usually pays dividends only once a year.

Some shareholders prefer to receive the dividend regularly, and others do not.

In my opinion, I prefer to receive dividends 4 times a year in order to reinvest them as quickly as possible in stocks 🤑

Choice of ETF's 📊

ETF choice

👍

UBS has over 60 different ETFs!

In reality, there is almost one ETF per stock market strategy, for example:

Geographic area
Replication of a stock index
Best High Dividend Stocks
Emerging Stock Markets

In reality, choosing an ETF according to your strategy should not be a problem 👍

Origin of ETFs 🌎

US ETFs	👎
Irish ETF	👍
ETF CH	👍

At the time of writing, UBS does not allow investing in ETFs of US origin. ❌

In fact, the main origins of UBS ETFs are Switzerland and Ireland.✅

Depending on the tax system in your country of residence. This detail can be important!

Conclusion

In conclusion, here is the essential information to understand in order to invest in a UBS ETF.

Liquidity of the investment fund	👌
Diversification / Investment risk	👍
TER requested	👍
Performance	👌
Dividends	1 time per year
Investment time	Less than 10 minutes per month
ETF's Choice	👍
Origin ETF US	👎
Origin ETF Ireland	👍
Origin ETF Switzerland	👍

UBS ETFs have the advantage of being the cheapest on the market. In addition, the bank is of Swiss origin, which can be reassuring for people living in Europe.

➡️ On the other hand, in my opinion. UBS ETFs are rarely more interesting than competitors Vanguard and iShares. Mainly for 3 reasons:

Some UBS ETFs underperform compared to Vanguard or iShares

No possibility to invest in a US-origin ETF with a UBS ETF

Dividends distributed only once a year by UBS. While Vanguard or iShares distribute 4 times a year.

Therefore, I keep a close eye on UBS ETFs. But for now, I favor iShares or Vanguard ETFs. 🔍

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the essentials to understand in order to invest in a UBS ETF.

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