XTrackers MSCI Pacific ex Japan UCITS ETF 1C
| Issuer: Xtrackers |
| Asset Class: Equity |
| TER: 25bps |
| Trading Currency: USD |
| Pays Income: False |
| Listing Date: 18 Feb 2009 |
| Ticker: XPXD |
| ISIN: LU0322252338 |
This investment vehicle offers targeted exposure to the equity markets of developed countries within the Pacific region, with the notable exclusion of Japan. It is designed to replicate the performance of a market-capitalisation weighted index comprising large and mid-cap companies from four key markets: Australia, Hong Kong, Singapore, and New Zealand. By focusing on these economies, the fund provides a way to invest in the established, stable, and internationally-oriented markets of the Asia-Pacific area. This strategy allows investors to gain diversified access to sectors like financials, materials, and healthcare, which are prominent in these regions, while maintaining precise control over their Japanese equity allocation.
A key feature of this product is its integration of Environmental, Social, and Governance (ESG) criteria. The underlying index employs a screening methodology that excludes companies based on their involvement in controversial business areas. This includes firms with ties to controversial weapons, tobacco production, thermal coal, and oil sands extraction. Furthermore, companies that are found to be in violation of the United Nations Global Compact principles are also removed. This screening process aims to mitigate exposure to certain ESG-related risks and cater to investors who wish to align their investments with specific ethical and sustainability standards.
This fund is well-suited for investors seeking a core holding for the developed Pacific region, separate from Japan. It serves as an efficient building block for constructing a diversified global equity portfolio, offering a convenient way to capture the growth and stability of economies like Australia and Singapore. The addition of the ESG screen makes it particularly appealing to those who prioritise responsible investing principles without deviating significantly from a broad market-cap weighted approach. It is an ideal instrument for investors looking for a transparent, rules-based method to implement a specific geographic and sustainable investment view.
