The construction of the Index originally used 3-month USD LIBOR. In connection with the discontinuation of such rate, UBS ratified amendments to the index methodology (the customer notice can be found here). Following January 3, 2022, the Index methodology will use, as a replacement to 3-month USD LIBOR, the sum of (i) the Secured Overnight Financing Rate (SOFR) and (ii) a spread that will progress from 0.10% to 0.26% through June 30, 2023. Following July 3, 2023, the Index methodology will use the sum of (i) SOFR and (ii) a spread of 0.26%.
The UBS Tech Edge Index is a rules-based multi-asset index that offers exposure to four equity ETFs known for their focus on innovation and technology. The Index implements a strategy that combines exposure to U.S. equities and fixed income and seeks to adapt to various market conditions. The Index also applies a bespoke volatility control mechanism designed by Salt Financial to identify changing market conditions using intraday data.
A consultation notice on proposed amendments to the methodology of the UBS Tech Edge Index to be implemented by, or shortly after, January 2, 2024 can be found here.
Index at a glance
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Balanced:
A diversified range of components across equities and fixed income affording exposure to multi-asset opportunities -
Technological Edge:
An equity focus on the potential further growth of the technology and biotech sectors -
Risk Focus:
A risk-balanced equity strategy and a daily risk control mechanism intended to stabilize the overall level of risk of the Index -
Innovative:
A state-of-the-art technology relying on intraday analysis to dynamically adjust the exposure to equity, aiming at navigating changing market conditions
Key characteristics
Bloomberg Ticker | CSEATEDG <Index> |
Category | Dynamic asset allocation |
Return Type | Excess return (it reflects the return of components net of the cost of funding) |
Currency | USD |
Live Date | January 14, 2021 |
Index Calculation Fees | 0.5% p.a. deducted daily |
Asset Class | U.S. Multi-asset |
Please refer to the Selected risk considerations for additional information on the Index.