UBS ETF EUR EQ Def Put Fund

The UBS ETF EUR EQ Def Put Fund is an exchange-traded fund designed to track the performance of the Euro Equity Defensive Put Write Index. This fund employs a synthetic replication strategy, using swaps to mirror the returns of the underlying index rather than directly holding the securities. The primary investment approach involves selling put options on the EURO STOXX 50 index, coupled with a cash position linked to a short-term German interest rate. This strategy aims to generate returns from option premiums, offering a defensive stance within European equities by potentially providing downside risk mitigation compared to a direct equity investment. The ETF accumulates income rather than distributing it, with dividends automatically reinvested. It is structured as a UCITS-compliant fund, ensuring adherence to European regulatory standards and investor protections. By integrating equity exposure with a derivative overlay, the fund serves institutional and individual investors seeking alternative risk-return profiles within the European equity market landscape, without engaging in securities lending activities. The fund is domiciled in Ireland and is managed by UBS, a leading provider of index-based investment solutions in Europe.