Xtrackers Japan Net Zero Pathway Paris Aligned UCITS ETF
| Issuer: Xtrackers |
| Asset Class: Equity |
| TER: 15bps |
| Trading Currency: USD |
| Pays Income: False |
| Listing Date: 05 Sep 2022 |
| Ticker: XNJG |
| ISIN: IE00074JLU02 |
This fund offers targeted exposure to a portfolio of large and mid-cap Japanese companies, specifically designed for investors looking to align their portfolios with the climate objectives of the Paris Agreement. The strategy selects companies that are on a clear path towards decarbonization and reducing their carbon footprint, aiming for a significant reduction in greenhouse gas intensity compared to a standard market index. The methodology also incorporates a year-on-year self-decarbonization target to ensure the portfolio's overall emissions profile continues to decline over time.
The investment product achieves this by tracking an index that adheres to the stringent criteria for EU Paris-Aligned Benchmarks (PAB). This involves excluding companies involved in controversial weapons, tobacco, and those deriving significant revenue from fossil fuels such as thermal coal, oil, and gas. Furthermore, the underlying index methodology actively overweights companies with strong decarbonization trajectories and underweights those that are lagging. This creates a portfolio not only focused on Japanese equities but also tilted towards businesses that are leading the transition to a low-carbon economy, based on their current emissions and future commitments.
Investing in this product presents a dual opportunity. It allows for participation in the Japanese equity market, one of the world's largest and most technologically advanced economies, while simultaneously applying a robust ESG and climate-conscious investment framework. For individuals or institutions aiming to decarbonize their portfolios and contribute to climate action without sacrificing geographic diversification, this instrument offers a compelling, rules-based solution. It is well-suited for long-term investors who believe that companies proactively managing climate risks and seizing related opportunities are better positioned for sustainable growth.
