XTrackers iBoxx USD Corporate Bond Yield Plus UCITS ETF 1D
| Issuer: Xtrackers |
| Asset Class: Fixed Income |
| TER: 25bps |
| Trading Currency: USD |
| Pays Income: False |
| Listing Date: 14 Mar 2018 |
| Ticker: XYLD |
| ISIN: IE00BF8J5974 |
This fund offers exposure to a portfolio of short-duration, investment-grade corporate bonds denominated in U.S. dollars, while adhering to a strict climate-conscious methodology. The strategy is specifically designed to align with the EU Paris-Aligned Benchmark (PAB) regulations, which mandate a significant and progressive decarbonization pathway for the underlying holdings. This involves excluding companies engaged in controversial weapons, tobacco, and activities related to fossil fuels, as well as those that violate global norms. The short-duration focus, targeting bonds with maturities between 0 and 3 years, helps to mitigate interest rate risk, making it a potentially defensive holding during periods of monetary policy tightening or rate uncertainty.
The investment process integrates stringent environmental, social, and governance (ESG) criteria to construct a portfolio that not only seeks stable returns but also contributes to the transition to a low-carbon economy. By tracking its benchmark, the fund invests in companies that demonstrate strong climate credentials and are on a measurable trajectory to reduce their carbon emissions in line with the Paris Agreement goals. This dual focus on financial stability and environmental impact allows investors to align their fixed-income allocation with sustainability objectives without necessarily sacrificing the defensive characteristics typically associated with short-term corporate debt.
For an investor, this product can function as a core component of a fixed-income portfolio, particularly for those looking to manage both duration risk and climate-related financial risks. It provides a targeted solution for accessing the U.S. corporate bond market through a responsible lens, offering the potential for regular income and capital preservation. This makes it suitable for individuals and institutions aiming to build resilient portfolios that are prepared for the long-term structural shifts driven by climate change and the global move towards a more sustainable economic model.
