The firm's latest fund aims to track the price and yield performance of the MSCI USA Select Factor Mix Index.

UBS Asset Management has listed a new alternative beta exchange-traded fund on the London Stock Exchange that offers exposure to US equities with a mix of factor tilts. 

The UBS ETF (IE) MSCI USA Select Factor Mix UCITS ETF offers investors exposure to large, mid-and small-cap US equities with a range of factor titlts built in, the firm said last week in a statement.

The new ETF aims to track the price and yield performance of the MSCI USA Select Factor Mix Index.

The benchmark is an alternatively-weighted index, the constituents of which are weighted according to specific risk premia, also known as factor tilts. These include value, quality, momentum, volatility, size and yield.

“Investors are increasingly seeing alternative beta as an important component of portfolios and assets in factor ETFs and exchange-traded products now total more than $500 billion globally,” said Andrew Walsh, head of passive and ETF specialist sales, UK and Ireland. 

“This new ETF allows investors to gain access to US equities via an index which employs a set of factor-screens which aims to improve returns, reduce risk and enhance diversification,” he added.