Xtrackers MSCI World Value ESG UCITS ETF 1C

Issuer: Xtrackers

Asset Class: Equity

TER: 25bps

Trading Currency: GBP

Pays Income: False

Listing Date: 18 Jul 2023

Ticker: XWVS

ISIN: IE000LAUZQT6

This fund offers a strategic approach to global equity investing by targeting companies within developed markets that demonstrate strong value characteristics. It is designed for investors looking to incorporate a value-oriented strategy into a broad, diversified portfolio of international stocks. The methodology involves selecting constituents from a parent index of developed world companies, aiming to capture the performance of firms that appear to be trading for less than their intrinsic or book value. This approach can serve as a core holding for those who believe in the long-term potential of the value investing philosophy, which seeks to identify and invest in undervalued assets before the broader market recognizes their true worth.

A distinguishing feature of this investment is its robust integration of Environmental, Social, and Governance (ESG) criteria. The underlying index not only screens for value metrics but also tilts its weightings towards companies with higher ESG ratings and improved carbon emission profiles. It systematically excludes firms with significant business involvement in controversial areas such as thermal coal, oil sands, tobacco, and controversial weapons. This dual-focus methodology appeals to investors who want to align their portfolios with their sustainability principles without forgoing a specific factor-based investment style. The strategy aims to deliver long-term capital growth by investing in quality, undervalued companies that also exhibit strong sustainability practices.

By combining the value factor with an ESG overlay, the fund provides a modern, rules-based solution for international equity exposure. It allows investors to target a historically significant driver of returns—value—while simultaneously managing sustainability-related risks and opportunities. This makes it a suitable option for long-term investors seeking to build a diversified, socially responsible portfolio that captures the potential upside of undervalued stocks across the globe.