Xtrackers Europe Net Zero Pathway Paris Aligned UCITS ETF 1C

Issuer: Xtrackers

Asset Class: Equity

TER: 15bps

Trading Currency: USD

Pays Income: False

Listing Date: 05 Sep 2022

Ticker: XEPA

ISIN: IE0001JH5CB4

This fund offers a strategic approach for investors looking to align their portfolios with global climate objectives, specifically the goals of the Paris Agreement. It provides exposure to a diversified basket of European large and mid-cap companies that are on a clear path towards decarbonization. The investment strategy is centered on tracking a benchmark designed to meet the criteria of the EU's Paris-Aligned Benchmark (PAB) regulation. This means the portfolio not only significantly reduces its carbon footprint compared to a standard European market index but also follows a year-on-year self-decarbonization trajectory. Companies involved in controversial weapons, tobacco, and fossil fuels are systematically excluded, ensuring the investment adheres to strict environmental, social, and governance (ESG) principles.

By selecting and weighting constituents based on their transition risk and opportunity, the fund aims to capture the potential upside of companies leading the shift to a low-carbon economy. It increases exposure to businesses generating green revenues and those with lower potential emissions from fossil fuel reserves. This forward-looking methodology provides a core European equity holding that is not only conscious of climate risks but is also structured to benefit from the opportunities arising from the global energy transition. It is suitable for long-term investors seeking to integrate a robust climate-focused strategy into their investments, aiming for sustainable growth while contributing to a net-zero future.