Xtrackers FTSE Developed Europe Real Estate UCITS ETF
| Issuer: Xtrackers |
| Asset Class: Equity |
| TER: 20bps |
| Trading Currency: USD |
| Pays Income: False |
| Listing Date: 25 Nov 2024 |
| Ticker: XZRE |
| ISIN: IE00BN2BCY94 |
This fund is designed to track the performance of the FTSE EPRA/NAREIT Developed Europe Index, offering investors targeted exposure to the publicly-listed real estate sector across developed European nations. The investment strategy employs a direct, physical replication method, meaning it purchases and holds the constituent securities of the index. A key feature of this product is its integration of Environmental, Social, and Governance (ESG) principles. The underlying index applies specific screens to exclude companies involved in certain controversial business activities or those that fail to meet the principles of the UN Global Compact.
The ESG methodology further refines the portfolio by applying rating-based filters, which results in the exclusion of companies with lower ESG scores compared to their industry peers. This dual-layered screening process aims to construct a portfolio of European real estate companies that not only represents the market but also demonstrates stronger sustainability characteristics. By focusing on firms with better ESG profiles, the fund seeks to mitigate long-term risks associated with environmental impact, social issues, and corporate governance failures, which can be particularly relevant in the property sector.
For an investor, this product serves as a strategic tool to gain access to the European real estate market without the burdens of direct property ownership. It can function as a satellite holding within a diversified portfolio, providing potential for capital growth and income from real estate assets. The fund's holdings are diversified across various real estate sub-sectors, such as residential, office, retail, and industrial properties. The incorporation of an ESG framework makes it suitable for those looking to align their investments with sustainability values while accessing a specific, high-potential market segment.
