Xtrackers MSCI World Minimum Volatility ESG UCITS ETF 1C

Issuer: Xtrackers

Asset Class: Equity

TER: 25bps

Trading Currency: USD

Pays Income: False

Listing Date: 18 Jul 2023

Ticker: XWEB

ISIN: IE0008YN0OY8

This investment product provides exposure to a diversified portfolio of global companies from developed markets, selected with the dual objectives of minimizing portfolio volatility and adhering to responsible investment standards. The core strategy is to construct a basket of stocks that, as a whole, exhibits lower price fluctuations than the broader market. This approach is designed for investors who want to participate in the growth potential of global equities but are also seeking to mitigate downside risk and potentially achieve a smoother investment journey, especially during periods of market stress.

The methodology goes beyond just risk management by integrating Environmental, Social, and Governance (ESG) criteria into its selection process. The underlying index screens for companies with strong sustainability profiles while actively excluding businesses involved in controversial sectors such as tobacco, controversial weapons, and thermal coal. This results in a portfolio that is not only optimized for lower volatility but also aligns with the principles of sustainable investing. The combination of these two factors aims to identify high-quality, resilient companies that are well-positioned for long-term performance.

This fund can serve as a core component of a well-diversified portfolio, offering a defensive tilt on global equity exposure. The accumulating share class structure ensures that all dividend income is automatically reinvested back into the fund, which can enhance long-term returns through the power of compounding. It is suitable for investors with a long-term horizon who are looking for a risk-conscious way to invest in international stocks while simultaneously making a positive impact through an ESG-focused strategy.