USCR (LON: USCR) – Ultimate Guide & Investment Overview

What is USCR?

The ticker USCR on the London Stock Exchange (LON:USCR) is not an ordinary share of a company, it is an Exchange-Traded Fund (ETF) called the USCR - "SPDR Bloomberg U.S. Corporate Scored UCITS ETF (Acc) (LON: USCR). It is an ETF that will give the UK and international investor exposure to the U.S. investment-grade corporations bonds, using ESG (Environmental, Social, Governance) and scored criteria (the Bloomberg SASB US Corporate Scored Ex-Controversies Select Index).

When you happen to be in US (or any other non-UK market) and you encounter LON:USCR, then you are not seeing a normal equity company, but a bond-market ETF.

Key Facts & Fund Overview

The funds-facts of the USCR ETF are as follows:

• Ticker: USCR (London Stock Exchange)
• Symbol: SPDR Bloomberg U.S. Corporate Scored UCITS ETF (Acc)
• Establishment date: December 19, 2020 (as of fund profile)
• Assets under management (AUM): USD 282.21 million (as of the data snapshot)
• The expense ratio is 0.15 percent TER (Total Expense Ratio)
• Ticked index: Bloomberg SASB U.S. Corporate Scored Ex-Controversies Select Index
• Type: U.S. Corporate Bond Fund (Fixed Income) Investment Grade
• Performance sample: 1-year performance: +5.88% (including dividends) during the quoted period
• 52-week range: Low 27.80 GBP, High 30.83 GBP (of the fund)

Why Investors Might Choose USCR?

• U.S. Corporate Bond Exposure: USCR provides investors with the diversified basket of U.S. corporate bonds. To those located out of the U.S. (UK, Canada) this can give them international fixed-income exposure without necessarily buying U.S. bonds one at a time.
• ESG / Scored Criteria: The label is Scored which means that the fund applies ESG-like filters (SASB, controversies exclusions). As an example, the fund does not cover issuers whose extraction works coal thermal or UN Global Compact or dubious weapons. This renders USCR attractive to those investors seeking more socially responsible fixed income.
• Reasonable Cost: The fund is relatively cheap with the expense ratio as low as 0.15, which makes it competitive in the bond ETFs. The reduced fees contribute to the retention of the returns that are devoured by charges.
• Income & Diversification: Although it could not have that high yield in contrast to high yield bond funds, investment grade corporate bonds can bring in consistent income with comparatively less risk (than equities) and could bring diversification advantages to a portfolio.

What to Watch: Risks & Considerations?

• Interest Rate Risk: Because USCR holds bonds, its value is sensitive to interest‑rate changes: when rates rise, bond prices tend to fall and vice versa. Investors need to be comfortable with this risk.
• Credit Risk: Although the fund targets investment‑grade corporates, the risk of defaults or credit downgrades exists. In economic downturns, even high‑quality corporates can suffer.
• Currency Risk: If you invest from Australia or other non‑GBP/ non‑USD markets, currency fluctuations (GBP vs USD) may impact returns.
• Liquidity & AUM: With AUM around USD 282 million, the fund is reasonably sized but smaller than some major ETFs. In stressed markets smaller funds can face liquidity constraints.
• Yield vs Equity Returns: Fixed income generally offers lower return potential compared to equities, especially in a low‑yield environment. Investors must align expectations.
• Market Risk / Macro Risk: Corporate bond performance can be affected by macroeconomic events, inflation, recessions, credit spreads, etc. It is not immune to market shocks.

How Does USCR Compare to Other Alternatives?

In the USCR vs alternatives, the following comparisons are taken into account:

• USCR vs Traditional U.S. Equity ETFs: Bonds (through USCR): Bonds act in a different manner compared to equities. During downturns the equities can decrease more than bonds whereas in the long term equities tend to perform better than bonds. As an illustration, USCR might not match the investment profile of an investor who anticipated to make growth in an equity manner.
• USCR vs High Yield Bond ETFs: The high yield fund will be taking a greater risk in credit, greater yielding capacity and greater risk. USCR is low yield and low-risk investment, as compared to high yield.
• USCR vs U.S. Government Bond ETFs: Government bonds will have lower risk than corporates but yield lower as well. USCR can be a high yield and moderate risk.
• USCR vs Other Corporate Bond ETFs (non-ESG screened): The ESG/Scored filter of USCR makes the difference. In case you do not care about ESG, then you may select a cheaper non-screened one.

How to Buy USCR (from UK / Canada / US)

• Broker choice: You will require a brokerage account that will enable you to trade at the London Stock Exchange (LSE).
• Currency: USCR deals with GBP (British pound) in LSE. Currencies In this case, you will have currency conversion fees and FX risk since your base currency is USD.
• Settlement taxes: Make sure local taxation (say UK dividend withholding).
• Liquidity/Size: Before trading, make sure that the fund is liquid enough (check average daily volume).
• Upon understanding fee: In addition to fee ratio of 0.15, there is brokerage fees, potential FX conversion fees, and possible withholding tax on any distribution.
• Investment time frame: Bond performance is sensitive to interest rates and credit cycle; make sure your investment term corresponds.
• Check fund factsheet: Latest yield, date of distribution, holdings, risk measures (duration, credit quality). As an example visit SPDR / SSGA site (issuer) and get the PDF.
• Track currency risk: As you have GBP/ USD exposure, weaker or stronger in GBP or USD can have an impact on your local return.
• Rebalancing and diversification: In case you possess other investment (equities, other bonds) then how does USCR fit in your portfolio? It can be fixed-income allocation as opposed to growth.

Performance, Yield & Metrics (2025 Snapshot)

• 1-year return for USCR stands at approximately +5.88%
• Expense Ratio: 0.15%
• 52-week price movement: 27.80 – 30.83 GBP (low to high)
• Assets Under Management (AUM): ~ USD 282.21 million
• Holdings: Approximately 1,585 securities
• Beta: -1.02 (reflective of index sensitivity)

Note on Yield: In the information available about the fund, there is no mention of a specific dividend yieldThis is usually provided on the fund provider’s site, showing either Yield to Maturity (YTM)or Distribution Yield for bond ETFs. Investors are advised to consult the latest fund fact sheetto review this data, as it’s an important element for potential investors seeking to understand return expectations.

USCR for Global Investors

• For U.S. Investors: U.S. investors may find USCR as a way to access U.S. corporates through a UK-listed fund. However, they might find easier access through U.S.-listed bond ETFs. Still, the ESG/Scored feature adds a distinctive and appealing aspect for those interested in responsible investing.
• For U.K. Investors: UK investors can access USCR directly through the London Stock Exchange (LSE) and gain exposure to U.S. corporate bonds in GBP, with the ESG filter applied. It can act as a substitute for UK bond funds or U.S.-dollar denominated corporate bond funds.
• For Canadian Investors: For Canadian investors, a UK-listed bond ETF can serve as a diversification tool, but they should consider both tax implications and currency risk (GBP/CAD).

What Does “Scored” Mean in the USCR ETF Name?

The term “Scored” in the name of the fund — SPDR Bloomberg U.S. Corporate Scored UCITS ETF — means that the fund represents an index that uses sustainability scoring based on the SASB (Sustainable Accounting Standards Board) framework. It removes companies involved in specific controversies or those with high-risk ESG exposures.

Therefore, USCR is not just a typical corporate bond fund; it applies an additional ESG and controversy screen. The “Scored” label makes it appealing for investors seeking responsible fixed income investments.

How Yield and Duration Influence USCR Performance

The performance of bond funds is largely determined by two characteristics:

• Duration – sensitivity to changes in interest rates
• Credit quality/spread

A longer-term portfolio tends to fall more when interest rates increase. While specific mean duration data for USCR is not available in the summary sources, investors are advised to check the latest factsheet for updated metrics.

Since USCR invests in investment-grade corporate bonds, it likely maintains moderate duration and lower yield compared to high-yield funds. When interest rates are low or credit spreads contract, USCR tends to perform well—and vice versa.

Fund Holdings: What Is USCR?

Based on its profile, USCR holds approximately 1,585 securities, mainly U.S. corporate bonds across different sectors, all screened for ESG controversies.

• Sector breakdown
• Top holdings
• Credit rating distribution
• Average maturity

All of these can be found in the latest fund factsheet on the issuer’s website, and it’s recommended to include a link inviting readers to access the PDF directly.

Historical Performance and Scenario Analysis

Over the past 12 months, USCR recorded a +5.88% performance, showing a positive turnaround. However, bond fund performance fluctuates based on interest-rate cycles and corporate credit conditions.

When the economy is weak, corporates may face challenges. Conversely, when inflation is low and interest rates are down, bond funds like USCR often perform well.

Scenarios to Consider

• Base Case: Mild growth and stable interest rates could result in moderate returns.
• Downside Scenario: Rising interest rates and inflation could lead to falling bond prices and widening corporate spreads, resulting in negative returns.
• Upside Scenario: Falling rates and tightening spreads could push performance into positive territory.

It’s essential to emphasize that USCR is not a growth stock, but a fixed-income investment instrument.

Tax, Currency, and Broker Considerations for International Investors

• Canada: Foreign withholding tax, currency risk (GBP/CAD), TFSA and RRSP account considerations
• United Kingdom: Capital gains and distribution income are subject to taxation; investors can directly access the ETF on the LSE
• United States: U.S. persons typically prefer U.S.-domiciled ETFs for simpler tax handling; acquiring a UK-listed fund can be complicated tax-wise

Investors should ensure their broker supports LSE trades, and understand: currency conversion costs, settlement timeframes, and trading fees.

Pros & Cons Summary

• Pros: Access to U.S. investment-grade corporate bonds in one instrument; Scored/ESG filter adds responsible investment screening; Low cost (0.15% TER); Highly diversified (~1,585 securities); Suitable for fixed-income allocation and diversification
• Cons: Subject to interest-rate and credit risk; Exchange rate risk for non-GBP investors; Lower potential returns compared to equities; Smaller AUM and liquidity versus major ETFs; For U.S. investors, domestic ETFs may be more efficient

How to Use USCR in a Portfolio

• Core Fixed-Income Sleeve: Use USCR as a central bond exposure within a balanced portfolio.
• Equity Diversifier: Combine USCR with equity holdings to increase yield and reduce volatility.
• ESG Fixed-Income Strategy: Ideal for investors who value sustainability and wish to include corporate bonds in their portfolio.
• Currency-Aware Allocation: Investors already exposed to GBP can benefit from matching currency exposure; others should monitor FX implications.
• Rebalancing Tool: After significant equity gains, investors can rebalance profits into USCR to stabilize portfolio performance.

Frequently Asked Questions (FAQs)

• Q1: Is USCR a stock or an ETF? A: USCR (LON:USCR) is an ETF — the SPDR Bloomberg U.S. Corporate Scored UCITS ETF — listed on the London Stock Exchange. It’s not part of a single company.
• Q2: What does “Scored” mean in the name USCR? A: “Scored” means the fund follows an index that incorporates SASB ESG scoring and excludes issuers with high controversies or ESG risks.
• Q3: What is the cost ratio of USCR? A: The Total Expense Ratio (TER) is approximately 0.15%.
• Q4: What is the yield of USCR? A: The exact distribution yield or YTM is not available in the summary. Investors should review the latest fund fact sheet for accurate and up-to-date yield data.
• Q5: What are the main risks of investing in USCR? A: Key risks include interest‑rate risk (as bond prices move inversely to rates), credit risk (corporate defaults or downgrades), currency risk (if your base currency differs), and market/liquidity risk.
• Q6: How has USCR performed historically? A: According to the latest snapshot, USCR delivered ~+5.88% return in the past year. However, past performance is not a guarantee of future results.
• Q7: Is USCR suitable for high growth investors? A: Probably not. USCR is a fixed‑income (bond) ETF; while it offers income and diversification, it does not offer the high growth potential of equities or growth stocks. Use it accordingly.

Conclusion

In summary, USCR (LON: USCR) is a solid option for investors seeking access to U.S. investment‑grade corporate bonds with an ESG/Scored overlay. Its low cost (0.15%), diversification (~1,585 holdings), and targeted exposure make it a compelling choice for fixed‑income allocation.