Xtrackers MSCI USA ESG UCITS ETF 1D

Issuer: Xtrackers

Asset Class: Equity

TER: 15bps

Trading Currency: USD

Pays Income: False

Listing Date: 27 Apr 2022

Ticker: XZMD

ISIN: IE000UMV0L21

This fund offers a targeted approach for investors seeking to combine exposure to the U.S. equity market with robust environmental, social, and governance (ESG) criteria. The investment objective is to reflect the performance of an index comprising large and mid-capitalisation companies from the United States. The strategy employs a 'best-in-class' methodology, selecting companies that exhibit high ESG performance relative to their industry peers. This approach ensures that investors gain access to a broad and diversified portfolio of leading American businesses that are also leaders in corporate sustainability.

The underlying index applies several layers of screening to construct its portfolio. It systematically excludes companies with significant business involvement in controversial sectors such as tobacco, controversial weapons, civilian firearms, thermal coal, and oil sands. Furthermore, the index incorporates a low-carbon tilt, aiming to reduce the portfolio's overall carbon footprint by favouring companies with lower carbon emissions and less exposure to fossil fuel reserves. This dual focus on comprehensive ESG leadership and carbon reduction makes it a compelling option for climate-conscious investors.

By investing in this product, individuals can align their financial goals with their personal values, gaining core exposure to the U.S. market while supporting companies committed to sustainable practices. It is structured as an accumulating fund, meaning any dividends paid by the constituent companies are automatically reinvested, which can help to enhance long-term compound returns. This makes it suitable for investors with a long-term growth objective who want to build a socially responsible core portfolio holding.