XTrackers MSCI World Consumer Staples UCITS ETF 1C

Issuer: Xtrackers

Asset Class: Equity

TER: 25bps

Trading Currency: USD

Pays Income: False

Listing Date: 24 Mar 2016

Ticker: XDWS

ISIN: IE00BM67HN09

This fund provides targeted exposure to the global consumer staples sector, comprised of large and mid-capitalisation companies across developed market countries. The consumer staples sector consists of businesses that produce and sell essential products and services that people use on a daily basis, regardless of the prevailing economic climate. These include items such as food, beverages, tobacco, household goods, and personal care products. The non-cyclical nature of these goods means that consumer demand tends to be stable and predictable, even during economic downturns when consumers might curtail spending on non-essential, discretionary items.

Investing in this product offers a classic defensive position within an equity portfolio. Due to the consistent demand for their products, consumer staples companies often exhibit lower volatility compared to the broader market and can provide a degree of portfolio stability during periods of uncertainty. These firms frequently benefit from strong brand loyalty, established distribution networks, and the ability to pass on rising costs to consumers, which can help protect profit margins during inflationary periods. This makes the fund a strategic tool for investors looking to reduce overall portfolio risk while maintaining exposure to equity growth, suitable for those aiming to diversify their holdings with a resilient sector known for its steady performance through various market cycles.

This investment can be used as a core defensive component in a long-term, diversified portfolio. It can also be employed tactically by investors who anticipate economic slowing or increased market volatility, as the consumer staples sector has historically outperformed more cyclical sectors during such phases. By providing access to a basket of leading global consumer staples companies through a single transaction, it eliminates the need for individual stock picking and the associated research. This focused approach allows for a precise allocation to a sector renowned for its defensive characteristics and stable earnings.