Flexibility through maturity band ETFs
One of the standout features of UBS’s fixed income ETF offering is the inclusion of maturity band ETFs. These products allow investors to fine-tune duration exposure – an essential capability in a market where interest rate expectations can shift rapidly.
For instance, investors concerned about rising rates can tilt toward shorter-duration ETFs, while those anticipating rate cuts may prefer longer-duration exposures to capture potential price appreciation. This flexibility is particularly valuable in the current environment, where central banks are signaling divergent paths and inflation remains a wildcard.
These investment view adjustments can be executed with confidence, as the additional liquidity filters applied to our corporate ETFs help reduce transaction costs within the fund which can still be significantly higher in fixed income than in equity.
