Xtrackers NASDAQ 100 Swap UCITS ETF
| Issuer: Xtrackers |
| Asset Class: Equity |
| TER: 20bps |
| Trading Currency: GBP |
| Pays Income: False |
| Listing Date: 27 Aug 2025 |
| Ticker: XNDX |
| ISIN: IE000EXUE0G2 |
This investment product offers exposure to the 100 largest non-financial companies listed on the Nasdaq stock market. It aims to replicate the performance of the Nasdaq 100 Notional Net Total Return Index. The portfolio is heavily concentrated in the technology sector, featuring prominent names in software, hardware, semiconductors, and e-commerce. It also includes significant holdings in other growth-oriented sectors like consumer discretionary, telecommunications, and healthcare. This makes it a vehicle for investors seeking targeted exposure to the innovation and growth dynamics of the U.S. large-cap market, distinct from broader market indices which have higher allocations to traditional sectors like financials and energy.
An allocation to this fund can serve as a core component for growth-focused investors or as a strategic satellite holding to complement a more diversified portfolio. The underlying index is renowned for its high concentration of companies at the forefront of technological advancement and disruptive innovation. These firms often exhibit strong growth potential, robust earnings, and leading market positions. By investing, one gains access to a basket of these influential companies in a single, cost-effective transaction. The synthetic replication methodology may offer tracking efficiency benefits, aiming to mirror the index returns closely by using a derivative (swap) agreement, which can be particularly advantageous in certain market conditions or for tracking specific index types.
This product is suitable for investors with a long-term investment horizon and a higher risk tolerance, given the concentration in the technology sector and the inherent volatility associated with growth stocks. The performance is highly correlated with the health of the tech industry and the broader U.S. economy. While the potential for high returns exists, investors should also be prepared for periods of significant drawdowns. As a synthetic product, it carries counterparty risk, which is the risk that the swap counterparty may not be able to meet its obligations. However, this risk is mitigated by UCITS regulations, which impose strict collateralisation and diversification requirements on swap counterparties.
