Xtrackers MSCI World Momentum ESG UCITS ETF 1C

Issuer: Xtrackers

Asset Class: Equity

TER: 25bps

Trading Currency: USD

Pays Income: False

Listing Date: 18 Jul 2023

Ticker: XWEM

ISIN: IE000TL3PL69

This investment vehicle offers exposure to a portfolio of global stocks from developed markets that exhibit high price momentum characteristics, while also incorporating Environmental, Social, and Governance (ESG) screening criteria. The strategy is designed for investors looking to capitalize on the momentum factor, which is the tendency of winning stocks to continue performing well in the near term. By systematically selecting companies that have shown strong recent performance, the fund aims to capture potential excess returns over a broad market benchmark. The integration of ESG criteria means the portfolio excludes companies involved in controversial activities such as controversial weapons, tobacco, and thermal coal, appealing to investors who wish to align their portfolios with sustainability values.

The fund provides a convenient and diversified way to access this dual-objective strategy. It is constructed to track a specific index that applies both momentum and ESG filters to the MSCI World universe. This results in a portfolio concentrated in companies across various sectors and countries that not only have positive performance trends but also meet certain ethical and sustainability standards. As an accumulating share class, any dividends paid by the underlying companies are reinvested back into the fund, which can enhance long-term compound growth. This structure may be particularly suitable for investors with a long-term horizon who prefer to have income automatically reinvested rather than receiving it as cash distributions. The product is physically replicated, meaning it holds the actual stocks of the index it tracks.