Xtrackers USA Net Zero Pathway Paris Aligned UCITS ETF 1C

Issuer: Xtrackers

Asset Class: Equity

TER: 10bps

Trading Currency: USD

Pays Income: False

Listing Date: 05 Sep 2022

Ticker: XNZU

ISIN: IE0002ZM3JI1

This fund offers exposure to U.S. large and mid-cap companies that are aligned with the long-term global warming objectives of the Paris Agreement. The strategy is designed for investors looking to decarbonize their portfolios and support the transition to a low-carbon economy. It specifically targets companies on a clear path to reducing carbon emissions, aiming for at least a 50% reduction in greenhouse gas intensity compared to a standard market-cap weighted U.S. equity index, in line with the EU's Paris-Aligned Benchmark (PAB) regulations.

The underlying index selects and weights constituents based on their alignment with a 'net-zero' pathway, considering not only their current emissions but also their forward-looking commitments and actions. To maintain this alignment, the index follows a strict year-on-year self-decarbonization trajectory of at least 7% on average. This robust methodology provides investors with a transparent and rules-based approach to gain core exposure to the U.S. equity market while actively contributing to climate change mitigation and managing transition risks.

This product is suitable for long-term, climate-conscious investors who wish to embed strong environmental, social, and governance (ESG) principles into their core U.S. equity allocation. By investing in companies leading the charge towards a sustainable future, investors can potentially benefit from the growth opportunities associated with the green transition. The accumulating share class structure ensures that any dividends are automatically reinvested, which is an efficient feature for those focused on long-term capital growth.