Xtrackers MSCI Global SDG 7 Affordable and Clean Energy UCITS ETF 1C

Issuer: Xtrackers

Asset Class: Equity

TER: 35bps

Trading Currency: USD

Pays Income: False

Listing Date: 14 Feb 2023

Ticker: XDG7

ISIN: IE000JZYIUN0

The global energy landscape is undergoing a profound transformation, driven by the urgent need to address climate change and the increasing economic viability of renewable power sources. This structural shift is underpinned by significant policy support worldwide, including initiatives like the Paris Agreement and national net-zero commitments. A key framework guiding this transition is the United Nations' Sustainable Development Goal 7 (SDG 7), which explicitly targets ensuring access to affordable, reliable, sustainable, and modern energy for all. This creates a compelling, long-term investment opportunity in companies that are at the forefront of the clean energy revolution, poised to benefit from substantial capital inflows and growing demand for their technologies and services.

This fund provides investors with direct and diversified exposure to this megatrend by tracking a portfolio of global companies actively engaged in the clean energy ecosystem. The underlying holdings span the entire value chain, from producers of renewable energy such as solar, wind, and hydropower, to innovators in energy storage, efficiency solutions, and the development of green hydrogen. The portfolio's global scope ensures exposure to leading firms across both developed and emerging markets, capturing innovation and growth wherever it occurs, from North American tech pioneers to European industrial leaders and rapidly expanding Asian markets. This approach mitigates single-country risk while capitalizing on the universal nature of the energy transition.

By investing in this theme, individuals can align their financial goals with positive environmental outcomes. It offers a way to participate in the growth potential of a sector critical to decarbonizing the global economy while contributing to the achievement of SDG 7. For those seeking to build a sustainable portfolio, this investment represents a targeted allocation to a key solution for a more sustainable planet, offering the potential for both attractive returns and measurable impact.