XTrackers MSCI World Value UCITS ETF 1C
| Issuer: Xtrackers |
| Asset Class: Equity |
| TER: 25bps |
| Trading Currency: GBX |
| Pays Income: False |
| Listing Date: 17 Oct 2014 |
| Ticker: XDEV |
| ISIN: IE00BL25JM42 |
This investment product provides exposure to large- and mid-capitalisation stocks across developed market countries that exhibit value characteristics. The underlying strategy is based on the value investing principle of identifying and investing in companies that appear to be trading for less than their intrinsic or book value. The selection process screens for stocks with low valuations based on fundamental metrics such as price-to-book value, price-to-forward earnings, and enterprise value-to-cash flow from operations. It also considers companies with high dividend yields. The objective is to capture the potential long-term outperformance of these undervalued securities as the market eventually recognizes their true worth, leading to price appreciation.
By focusing on the value factor, the fund offers a systematic way to implement a classic investment style that has historically delivered a premium over broad market returns, albeit with periods of underperformance. This strategy may appeal to investors with a longer time horizon who are comfortable with the cyclical nature of factor investing. The portfolio is diversified across a wide range of sectors and geographies, including significant allocations to the United States, Japan, and the United Kingdom, which helps mitigate concentration risk. It provides a targeted tilt towards value within a core global equity allocation, serving as a complement to growth-oriented or market-cap-weighted strategies.
The portfolio is constructed through full physical replication, meaning it holds the actual securities of the underlying index. This transparent approach ensures direct ownership of the constituent companies, which are primarily in sectors like Financials, Health Care, Industrials, and Energy. For investors seeking to capitalize on the potential recovery of fundamentally sound but currently out-of-favor companies, this product offers a cost-effective and convenient vehicle to gain diversified access to the global value equity segment.
