XTrackers Stoxx Europe 600 Food & Beverage Swap UCITS ETF 1C

Issuer: Xtrackers

Asset Class: Equity

TER: 17bps

Trading Currency: GBX

Pays Income: False

Listing Date: 04 Aug 2008

Ticker: XS3R

ISIN: LU0292105359

This investment product offers targeted exposure to the European Consumer Staples sector, focusing on companies that are generally less sensitive to economic cycles. It tracks an index composed of large and mid-cap companies across 15 developed European countries. These are businesses providing essential goods and services that consumers need regardless of the economic climate, such as food, beverages, tobacco, and household products. The strategy's defensive nature stems from the consistent demand for these products, which can offer a degree of stability and resilience to a portfolio, particularly during periods of market volatility or economic downturn.

A key feature of this product is its integration of Environmental, Social, and Governance (ESG) criteria. The underlying index screens out companies involved in controversial activities like controversial weapons, tobacco, thermal coal, and oil sands, as well as those failing to comply with United Nations Global Compact principles. This ESG screening process aims to invest in more sustainable and socially responsible companies within the consumer staples sector. By incorporating these non-financial factors, the strategy seeks to mitigate long-term risks associated with poor corporate governance, environmental impact, and social issues, potentially enhancing risk-adjusted returns over the long run for investors who prioritize sustainable investing principles.

For investors looking to add a defensive and sustainable tilt to their equity allocation, this product presents a compelling option. It provides a convenient, single-trade solution to access a diversified basket of leading European consumer staples companies while adhering to specific ESG standards. The accumulating share class structure means that any dividends paid by the underlying companies are automatically reinvested back into the fund, which can help compound returns over time, making it suitable for long-term growth objectives.