Xtrackers USA Biodiversity Focus SRI UCITS ETF 1C

Issuer: Xtrackers

Asset Class: Equity

TER: 25bps

Trading Currency: USD

Pays Income: False

Listing Date: 06 Nov 2023

Ticker: XBUZ

ISIN: IE000LOSV2D0

This fund offers targeted exposure to U.S. large and mid-cap companies that demonstrate strong Environmental, Social, and Governance (ESG) credentials, with a distinct and specialized emphasis on biodiversity. The strategy aims to invest in corporations that either positively contribute to ecological preservation or maintain a minimal negative impact on the natural world, while concurrently adhering to broad Socially Responsible Investing (SRI) principles. By tracking a custom index, the fund filters the U.S. equity market to select constituents that align with the protection of natural ecosystems. This forward-looking approach expands beyond typical carbon-centric ESG metrics to tackle the wider ecological footprint of businesses, a theme of growing importance for sustainable finance.

The underlying index employs a multi-layered screening process, beginning with the exclusion of companies involved in controversial activities such as weapons manufacturing, tobacco, and thermal coal, as well as firms that breach international standards like the UN Global Compact. Following these foundational SRI screens, the methodology integrates specific biodiversity-related criteria. It assesses companies based on their impacts on land and water systems, pollution levels, and consumption of natural resources. Firms with operations that pose a high risk to or have a significant adverse impact on key biodiversity areas are systematically removed, ensuring the resulting portfolio is composed of companies at the forefront of managing their relationship with the environment.

This investment is tailored for conscientious investors seeking to direct their capital towards a specific environmental goal that complements climate action. It is particularly suitable for those looking to incorporate the preservation of natural capital and biodiversity into their U.S. equity holdings. By focusing on firms that adeptly manage their environmental dependencies, the fund may appeal to investors who view strong ecological stewardship as a sign of operational resilience and long-term value. It can function as a core or satellite holding within a diversified, ESG-focused portfolio, offering a unique way to invest in a future where economic progress is harmonized with ecological well-being.