XTrackers MSCI EM Europe, Middle East & Africa ESG Swap UCITS ETF 1C
| Issuer: Xtrackers |
| Asset Class: Equity |
| TER: 65bps |
| Trading Currency: USD |
| Pays Income: False |
| Listing Date: 06 Sep 2007 |
| Ticker: XMXD |
| ISIN: LU0292109005 |
This fund provides targeted exposure to companies within the Emerging Markets of Europe, the Middle East, and Africa (EMEA). It aims to replicate the performance of a specific regional benchmark, offering a convenient way to invest in a diverse set of developing economies that are often characterized by higher growth potential compared to developed markets. The strategy focuses on large and mid-cap companies across various sectors, providing a broad representation of the economic landscape in these regions. By investing in this instrument, individuals can gain access to markets that might otherwise be difficult to reach, such as Saudi Arabia, South Africa, the United Arab Emirates, and Poland, all through a single, regulated product structure.
A key feature of this investment vehicle is its integration of Environmental, Social, and Governance (ESG) principles. The underlying index applies specific screening criteria to exclude companies involved in controversial activities, such as controversial weapons, tobacco, and thermal coal. It also excludes companies that are deemed non-compliant with the United Nations Global Compact principles. This ESG overlay aims to reduce exposure to sustainability-related risks and align the portfolio with the values of socially conscious investors. This approach seeks to capture the growth opportunities within the EMEA region while simultaneously promoting better corporate behavior and mitigating potential long-term risks associated with poor ESG practices.
This product is suitable for investors seeking to diversify their portfolios geographically and add a specific allocation to emerging markets with an ESG focus. The EMEA region offers a unique blend of commodity-rich economies in the Middle East and Africa, coupled with developing industrial and service sectors in Eastern Europe. This can provide diversification benefits against traditional developed market holdings. Given its specific regional focus and the inherent volatility of emerging markets, it is typically best utilized as a satellite holding within a well-diversified global portfolio.
