Xtrackers USD Corporate Green Bond UCITS ETF 1D GBP Hedged

Issuer: Xtrackers

Asset Class: Fixed Income

TER: 25bps

Trading Currency: GBP

Pays Income: False

Listing Date: 22 Oct 2021

Ticker: XGBB

ISIN: IE000X63FXN4

This actively managed fund offers targeted exposure to the growing market of US dollar-denominated, investment-grade corporate green bonds. It aims to deliver a total return that surpasses its benchmark, the Bloomberg MSCI US Corporate Liquid Green Bond Index, over a three-to-five-year horizon. The strategy focuses on bonds issued by corporations to finance projects with clear environmental benefits, such as renewable energy, energy efficiency, clean transportation, and sustainable water management. By investing in these securities, the fund allows participants to align their capital with the transition to a low-carbon economy while seeking attractive risk-adjusted returns from the corporate credit market. The portfolio is constructed with a focus on liquidity and credit quality, primarily holding bonds rated investment-grade.

This investment vehicle is suitable for those looking to incorporate environmental, social, and governance (ESG) principles into the fixed-income portion of their portfolios without sacrificing the potential for competitive returns. It can serve as a core holding for investors seeking exposure to US corporate credit with a specific sustainable mandate, or as a satellite holding to complement a broader bond portfolio. The fund's active management approach allows the portfolio managers to navigate the evolving green bond landscape, selectively choosing securities they believe offer the best value and environmental impact. As the demand for green financing accelerates globally, this fund provides a direct way to support corporate climate initiatives while participating in the potential growth of this specialised debt market.