Xtrackers World Net Zero Pathway Paris Aligned UCITS ETF 1C
| Issuer: Xtrackers |
| Asset Class: Equity |
| TER: 19bps |
| Trading Currency: USD |
| Pays Income: False |
| Listing Date: 04 Mar 2022 |
| Ticker: XNZW |
| ISIN: IE000UZCJS58 |
This fund offers exposure to a global portfolio of developed market equities, with a core strategy centered on alignment with the Paris Agreement's climate objectives. The portfolio is constructed to be compatible with a 1.5°C warming scenario, concentrating on companies on a distinct path towards decarbonization. It achieves this by tracking a specific climate-focused benchmark that systematically reduces exposure to carbon-intensive businesses while increasing allocations to companies demonstrating strong green credentials or those actively engaged in a sustainable transition. The investment aims to provide broad market participation while actively managing climate-related risks.
The methodology behind the underlying index adheres to the stringent criteria of the EU's Paris-Aligned Benchmark (PAB) regulations. This includes the exclusion of companies involved in controversial sectors such as certain weapons, tobacco, and those generating significant revenue from fossil fuels like thermal coal. Moreover, the index targets a substantial reduction in greenhouse gas (GHG) intensity compared to its parent universe and maintains a self-decarbonization trajectory year over year. This rules-based approach not only helps mitigate transition and physical risks linked to climate change but also seeks to capture opportunities that arise from the global shift towards a net-zero economy.
This product is tailored for environmentally conscious investors aiming to integrate long-term climate goals into their portfolios without forgoing the benefits of diversification across developed economies. It presents a transparent, systematic solution for those wishing to support the low-carbon transition. By focusing on companies leading in climate action and innovation, it offers potential for growth aligned with sustainable trends. As an accumulating fund, all dividends are reinvested, which can bolster long-term compound returns for the investor.
