Xtrackers MSCI USA ESG UCITS ETF 1C

Issuer: Xtrackers

Asset Class: Equity

TER: 15bps

Trading Currency: GBP

Pays Income: False

Listing Date: 15 Jun 2020

Ticker: XESU

ISIN: IE00BFMNPS42

This investment vehicle offers targeted exposure to the U.S. equity market, specifically focusing on large and mid-capitalization companies that demonstrate strong Environmental, Social, and Governance (ESG) characteristics. It is designed for investors who wish to integrate sustainability and ethical considerations into their portfolios while maintaining broad access to the largest stock market in the world. The underlying strategy meticulously screens out companies with significant business involvement in controversial sectors, including controversial weapons, civilian firearms, tobacco, thermal coal, and oil sands. This exclusionary approach ensures the portfolio aligns with specific values-based criteria.

Furthermore, the methodology removes companies that are found to be in violation of the United Nations Global Compact principles, which cover human rights, labor, environment, and anti-corruption. By tracking a specialized ESG-screened index, the fund aims to deliver a performance profile similar to the broader U.S. market, but with a reduced carbon footprint and improved sustainability score. This makes it a compelling core holding for investors seeking to build a socially responsible portfolio. The physical replication method means the fund holds the actual shares of the constituent companies, providing a direct and transparent investment approach. It offers a straightforward and efficient solution for capturing the growth potential of U.S. equities through a responsible investment lens.