UBS Asset Management to close four ESG ETFs

illuminem summarises for you the essential news of the day, reviewed by our editorial team. Read the full piece on Responsible Investor or enjoy below:

🗞️ Driving the news: UBS Asset Management is set to close four ESG-related ETFs, citing poor commercial prospects for two of the products
• The move also includes a green bond ETF and a government bond ETF, highlighting continued pressure on parts of the sustainable investment market

🔭 The context: UBS has built a substantial sustainable ETF offering over the past decade, including ESG, climate-aligned and green bond products
• Its sustainability ETF range had surpassed $30 billion in assets under management by 2021, although individual funds can face weak demand or insufficient scale

🌍 Why it matters for the planet: Closing sustainable funds can reduce the availability of investment products explicitly designed around ESG or green criteria
• However, the environmental impact depends on where the assets ultimately move and whether investors continue allocating capital toward lower-carbon activities

⏭️ What’s next: Investors will need to assess the implications of the closures and potential replacement products, while asset managers continue adjusting ESG offerings to demand, regulation and commercial viability

💬 One quote: UBS cited “poor commercial prospects” as the reason for two of the fund closures

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