UBS aims to expand ETF offering by year-end

Switzerland's biggest bank UBS aims to significantly expand its offering of exchange-traded funds (ETFs) by the end of the year, according to the company's head of ETF business. "We want to have about 50 ETFs on the market by the end of 2011," Clemens Reuter told Reuters in an interview on June 23. At the moment, UBS offers 35 ETFs.
"Our focus will lie on corporate bonds and emerging markets bonds," Reuter added. In the bond segment, UBS only offers three ETFs on Swiss bonds so far. The company also plans to launch new equity products in the emerging markets segment, and Reuter said he saw demand for products on single countries. UBS has launched its first ETFs about 10 years ago and is only a small player in the global $1.447 trillion ETF industry.
With $10.3 billion in assets under management at the end of May, the bank is the world's No.14 player in the industry, according to a study by market leader BlackRock. Exchange-traded funds are index funds listed on an exchange and can be traded just like regular stocks. They try to replicate index performances and offer lower costs than actively managed funds. Most ETFs are backed by equities.
UBS, which is so far only active in the European ETF industry, is also looking at expanding its business outside the continent. "We're seeing good opportunities to expand our business into Asia," Reuter said.