(CNESG) UBS (Lux) Fund Solutions – - Ratings and Ratios

The UBS (Lux) Fund Solutions – MSCI China ESG Universal Low Carbon Select UCITS ETF (USD) A-dis, ticker symbol CNESG, is an exchange-traded fund (ETF) that tracks the Morningstar China TME NR USD index. This ETF is designed to provide investors with exposure to Chinese equities while incorporating environmental, social, and governance (ESG) considerations and a focus on low carbon emissions.

As a China Equity ETF, CNESG is likely to be heavily invested in a diversified portfolio of Chinese stocks, potentially including a mix of large-cap and mid-cap companies across various sectors. The funds ESG and low carbon focus suggests that it may exclude companies with poor ESG track records or those with significant carbon footprints, potentially leading to a more sustainable long-term investment profile.

Analyzing the provided technical data, we observe that the ETFs price is currently at $10.39, with its 20-day, 50-day, and 200-day simple moving averages (SMA) all converging at $10.14. This convergence indicates a potential bullish signal, as the short-term and long-term trends are aligning. The Average True Range (ATR) stands at 0.15, representing a 1.42% daily volatility, which is relatively moderate. The 52-week high and low prices are $10.39 and $9.91, respectively, suggesting a relatively stable price range over the past year.

Combining the technical analysis with the fundamental data, we note that the funds Assets Under Management (AUM) stand at $248.60 million USD. While this is a relatively modest size, it is still a viable ETF with sufficient liquidity. By analyzing the trend and volatility, we can forecast that CNESG may continue to trade within a narrow range in the short term, potentially oscillating around its current price. However, if the overall Chinese equity market continues to grow, and the ESG and low carbon focus of the fund remains attractive to investors, we may see a gradual increase in the ETFs price over the medium to long term, potentially reaching $11.00 within the next 12-18 months, driven by a combination of fundamental and technical factors.

To validate this forecast, further analysis of the underlying index, Morningstar China TME NR USD, is necessary. If the index continues to perform well, driven by the growth of Chinese equities and the increasing demand for ESG-compliant investments, CNESG is likely to follow suit. Additionally, monitoring the funds tracking error, trading volume, and AUM will be crucial in assessing its overall performance and potential for future growth.