XTrackers MSCI World ESG UCITS ETF 1C

Issuer: Xtrackers

Asset Class: Equity

TER: 20bps

Trading Currency: GBP

Pays Income: False

Listing Date: 15 Jun 2020

Ticker: XESW

ISIN: IE00BZ02LR44

This investment vehicle offers exposure to a diversified portfolio of large and mid-cap stocks from developed countries around the world, specifically selected based on robust environmental, social, and governance (ESG) criteria. The underlying strategy is designed for investors looking to align their capital with companies demonstrating strong sustainability practices. By tracking an index of ESG leaders, the fund systematically excludes businesses involved in controversial activities such as certain weapons, tobacco, and thermal coal, while also avoiding companies that fail to meet certain ESG standards. This approach aims to capture the performance of companies that are better positioned to manage long-term risks and opportunities associated with sustainability trends.

The portfolio provides broad market exposure, covering various sectors and geographies within the developed world, but with a distinct tilt towards higher-rated ESG performers. This makes it a suitable core holding for investors seeking to integrate responsible investing principles without sacrificing diversification. The construction methodology relies on a best-in-class approach, selecting companies with the highest ESG ratings relative to their sector peers. This ensures that the investment is not only avoiding poor performers but is actively allocating capital to leaders in corporate sustainability. The fund's structure as a physically replicated, accumulating vehicle means that it directly holds the underlying securities and reinvests all dividends, promoting long-term capital growth through compounding.