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

The UBS(Lux)Fund Solutions – J.P. Morgan USD EM IG ESG Diversified Bond UCITS ETF(USD)A-acc is an exchange-traded fund (ETF) designed to replicate the performance of the J.P. Morgan USD EM IG ESG Diversified Bond Index, a benchmark that tracks the USD-denominated emerging markets investment-grade bond market with a focus on ESG (Environmental, Social, and Governance) considerations. By tracking this index, the ETF aims to provide investors with exposure to a diversified portfolio of emerging market bonds that meet certain ESG criteria.

The funds currency-hedged share classes are designed to mitigate the impact of currency fluctuations between the share class currency and the index currency (USD) by utilizing a hedging strategy that involves selling currency forwards at the one-month forward rate. This approach is aligned with the hedging methodology of the indexs currency-hedged variant, providing a more stable return profile for investors.

From a technical analysis perspective, the ETFs price action suggests a potential bullish reversal. The current price of 11.78 is above the 20-day simple moving average (SMA) of 11.63, indicating a short-term uptrend. However, the price remains below the 50-day SMA of 12.04 and the 200-day SMA of 12.22, suggesting that the long-term trend is still bearish. The average true range (ATR) of 0.12 (or 0.99% of the current price) indicates relatively low volatility, which may be attributed to the funds diversified portfolio and hedging strategy.

Using the available technical and fundamental data, a forecast for the ETF can be made. Assuming the current AUM of $274.74M EUR remains stable and the ETF continues to track the underlying index, a potential price target can be estimated. If the ETFs price were to revert to its 50-day SMA of 12.04, it would represent a potential upside of 2.2% from the current price. However, if the long-term bearish trend were to continue, the price could potentially decline towards the 52-week low of 11.39, representing a downside of 3.3%. Given the current technical indicators and fundamental data, a neutral stance is recommended, with a potential long entry point near the 52-week low and a potential short entry point near the 50-day SMA.