XTrackers Stoxx Europe 600 Telecommunications Swap UCITS ETF 1C
| Issuer: Xtrackers |
| Asset Class: Equity |
| TER: 17bps |
| Trading Currency: GBX |
| Pays Income: False |
| Listing Date: 04 Aug 2008 |
| Ticker: XSKR |
| ISIN: LU0292104030 |
This investment product offers targeted exposure to large and mid-cap companies within the European Communication Services sector. The portfolio includes firms from two main industry groups: Telecommunication Services and Media & Entertainment. This encompasses traditional fixed-line and wireless providers, as well as a dynamic range of companies involved in advertising, broadcasting, cable and satellite, publishing, and interactive home entertainment. By investing in this fund, one gains access to the evolution of communication, from foundational infrastructure to the creation and distribution of digital content, capturing a crucial segment of Europe's modern economy. It provides a diversified approach to a sector that is integral to both consumers and businesses, driven by trends such as 5G network expansion and increasing demand for digital media.
A key feature of this fund is its integration of Environmental, Social, and Governance (ESG) criteria. The underlying index employs a screening process to exclude companies with significant business involvement in controversial areas like thermal coal, oil sands, controversial weapons, and tobacco. Furthermore, it removes companies that are rated as ESG laggards or are non-compliant with the principles of the UN Global Compact. This ESG-focused methodology is designed for investors who wish to align their financial goals with sustainability principles, potentially reducing exposure to long-term risks associated with poor corporate governance, environmental impact, or social controversies. The approach aims to construct a portfolio of more resilient and forward-looking companies within the European communication landscape.
This financial instrument can serve as a strategic or tactical allocation within a diversified portfolio. For investors with a positive outlook on the European continent and its digital transformation, it offers a precise tool to express that view. The sector combines both cyclical and defensive characteristics; while advertising and media spending can be sensitive to economic cycles, telecommunication services often provide stable, subscription-based revenue streams. This blend can offer a degree of resilience while capturing growth from innovation in content delivery and digital platforms. It is suitable for those seeking focused European equity exposure beyond broad market indices, with an added layer of ESG-conscious screening.
