Xtrackers Global Infrastructure ESG Screened UCITS ETF 1C
| Issuer: Xtrackers |
| Asset Class: Equity |
| TER: 25bps |
| Trading Currency: USD |
| Pays Income: False |
| Listing Date: 17 Oct 2024 |
| Ticker: XINF |
| ISIN: IE00BYZNF849 |
This investment product offers exposure to the global infrastructure sector, which includes companies that own and operate essential assets for society and economic activity. These typically encompass sectors such as transportation, utilities, energy, and communications. The investment thesis for infrastructure often revolves around the potential for stable, long-term, and predictable cash flows, which can be attractive to investors seeking portfolio diversification and a potential hedge against inflation due to the essential nature of the services these companies provide.
The strategy aims to replicate the performance of a specialized index that captures large and mid-cap listed infrastructure companies across both developed and emerging markets. A key feature of the underlying benchmark is its 50/50 weighting methodology, which provides a balanced allocation between various infrastructure sub-sectors and market-capitalization-weighted companies. Furthermore, the index incorporates an Environmental, Social, and Governance (ESG) screening overlay. This process excludes firms based on their involvement in controversial activities like weapons, tobacco, and thermal coal, as well as companies that do not meet specific ESG rating criteria, thereby aligning the portfolio with sustainable investment principles.
By investing in this product, individuals can gain access to a broad and diversified basket of global infrastructure assets through a single transaction. It is designed for those looking to tap into the long-term growth potential of global infrastructure development while adhering to ESG considerations. The accumulating share class structure means that any dividends paid out by the underlying companies are automatically reinvested, fostering the potential for compound growth over time. This approach may be suitable for investors with a long-term horizon seeking capital appreciation and a defensive component within their broader investment portfolio.
