Karachi: United Bank Limited’s UBL Pakistan Enterprise Exchange Traded Fund (UBLP-ETF) has demonstrated notable performance metrics as of December 31, 2025, amidst a high-risk investment environment. Launched on March 24, 2020, the fund aims to achieve long-term capital appreciation and dividend yields by tracking the UBL PSX Pakistan Enterprise Index.

Throughout December 2025, the fund’s asset allocation comprised 94.95% equities, 0.35% cash, and 4.71% other assets. This allocation reflects a concentrated focus on equities compared to the previous months, demonstrating a strategic adjustment in investment proportions.

The UBLP-ETF is designed to mirror the performance of the top nine companies from the KSE-100 Index, excluding the oil and gas sector, based on the highest free float market capitalization and traded value. The fund’s exposure to single entities, such as Fauji Fertilizer Company Limited and United Bank Limited, slightly exceeded their set limits, with FFC at 17.59% against a 16.00% limit and UBL at 16.02% over a 16.00% threshold.

According to information available from the Pakistan Stock Exchange (PSX), the UBLP-ETF recorded a moderate move with a net asset value (NAV) increase of 4.40% in December 2025. The fund size also expanded from PKR 244 million in November to PKR 286 million, marking a significant move of 17.29%.

When compared to its benchmark, the UBL PSX Pakistan Enterprise Index, the UBLP-ETF’s returns slightly trailed across various timeframes. Over one year, the fund achieved a return of 76.10%, while the benchmark posted 80.73%. Over a five-year period, the fund’s return was 335.21%, compared to the benchmark’s 394.55%. Since inception, the UBLP-ETF has yielded a return of 448.06%, compared to the benchmark’s 531.53%.

The fund’s performance metrics, such as a standard deviation of 20.67% and a Sharpe ratio of 3.14, suggest a calculated approach to balancing risk and return. The portfolio turnover ratio remains low at 0.02%, indicating a strategic long-term investment approach.

Despite its robust performance, the UBLP-ETF’s information ratio was recorded at -15.92, suggesting room for optimization in aligning closely with the benchmark performance. The total expense ratio for the fiscal year to date stood at 1.38%, reflecting the costs associated with managing the fund.

Under the management of Equity Specialist Karim Punjani, the UBLP-ETF continues to navigate a high-risk market environment, remaining a key player in the designated market category on the Pakistan Stock Exchange.