XTrackers MSCI EM Asia Swap UCITS ETF 1C
| Issuer: Xtrackers |
| Asset Class: Equity |
| TER: 65bps |
| Trading Currency: GBX |
| Pays Income: False |
| Listing Date: 06 Sep 2007 |
| Ticker: XMAS |
| ISIN: LU0292107991 |
This investment product provides targeted exposure to large and mid-capitalisation companies across various emerging market countries in Asia. The strategy is designed for investors who wish to align their portfolios with Environmental, Social, and Governance (ESG) principles. It achieves this by synthetically tracking a benchmark index that applies a series of ESG-focused screens to the parent MSCI Emerging Markets Asia universe. Specifically, the methodology excludes companies with business activities in controversial areas such as controversial weapons, civilian firearms, tobacco, thermal coal, and oil sands. Furthermore, it removes companies that are non-compliant with the United Nations Global Compact principles or have faced severe ESG-related controversies, ensuring a portfolio of companies with better sustainability profiles. The fund uses an unfunded swap structure to deliver the performance of the index.
This fund is particularly suitable for investors seeking to capture the long-term growth potential inherent in Asian emerging economies, which are often characterized by rapid industrialization, a growing middle class, and technological innovation. By incorporating an ESG filter, the investment helps to mitigate potential risks associated with poor corporate governance or negative environmental impacts, appealing to socially conscious investors. The synthetic replication can lead to precise tracking of the benchmark with potentially lower transaction costs. As an accumulating share class, all income generated by the underlying securities is automatically reinvested back into the fund, which promotes compounding and is tax-efficient for long-term investors focused on capital appreciation. It serves as an effective tool for either a core strategic allocation to ESG-focused emerging markets or a tactical play on the region's growth story.
