XTrackers MSCI Europe ESG UCITS ETF 1C

Issuer: Xtrackers

Asset Class: Equity

TER: 20bps

Trading Currency: GBX

Pays Income: False

Listing Date: 16 May 2018

Ticker: XZEU

ISIN: IE00BFMNHK08

This fund offers exposure to a portfolio of European large and mid-cap companies selected based on strong Environmental, Social, and Governance (ESG) characteristics. The strategy aims to replicate the performance of a benchmark that identifies companies with high ESG ratings relative to their sector peers, enabling investors to access the European equity market while aligning with sustainability principles. By employing a 'best-in-class' approach, the fund selects companies that demonstrate robust management of ESG risks and opportunities, providing a core holding for socially conscious investors focused on the European region.

The underlying index applies rigorous screening criteria, excluding companies with significant business involvement in controversial activities such as tobacco, controversial weapons, thermal coal, and oil sands. Companies that fail to meet minimum ESG standards or are involved in major ESG-related controversies are also removed. This process ensures the resulting portfolio not only favors ESG leaders but also actively avoids firms with detrimental societal or environmental impacts. The fund utilizes a physical replication method, meaning it directly owns the securities of the constituent companies, offering transparency in its holdings.

This investment is suitable for those seeking a core European equity position with a distinct sustainability focus. By concentrating on ESG leaders, the strategy aims to tap into companies potentially better equipped to handle long-term risks and capitalize on emerging sustainable opportunities. It provides a rules-based, transparent way to integrate ESG considerations into a diversified European portfolio, which may appeal to investors who believe that strong ESG performance is indicative of high-quality, resilient businesses poised for long-term growth.