XTrackers MSCI EM Latin America ESG Swap UCITS ETF 1C

Issuer: Xtrackers

Asset Class: Equity

TER: 40bps

Trading Currency: GBX

Pays Income: False

Listing Date: 07 Sep 2007

Ticker: XMLA

ISIN: LU0292108619

This investment product offers focused exposure to the dynamic and resource-rich economies of Latin America. The region, dominated by powerhouses like Brazil and Mexico, presents a compelling growth narrative driven by a young and growing population, an expanding middle class, and abundant natural resources, particularly in energy, minerals, and agriculture. As global supply chains reconfigure and demand for key commodities remains robust, Latin American companies are uniquely positioned to benefit. This provides an opportunity for investors to participate in a region with significant long-term potential, though it is important to acknowledge the inherent cyclicality and political risks associated with emerging markets.

What distinguishes this fund is its integration of Environmental, Social, and Governance (ESG) principles. The underlying portfolio is constructed by screening the broad Latin American market to exclude companies involved in controversial sectors such as tobacco, controversial weapons, and thermal coal. Furthermore, it filters out companies that do not meet specific ESG quality standards. This ESG-focused methodology aims to mitigate certain risks and align the investment with the values of sustainability-conscious investors. By concentrating on companies with stronger ESG profiles, the strategy seeks to capture the region's growth while potentially enhancing long-term, risk-adjusted performance. Access to this targeted market is achieved through a swap-based structure, which can offer efficient and precise tracking of the custom benchmark index.