XTrackers S&P Global Infrastructure Swap UCITS ETF 1C
| Issuer: Xtrackers |
| Asset Class: Equity |
| TER: 60bps |
| Trading Currency: GBX |
| Pays Income: False |
| Listing Date: 07 Feb 2008 |
| Ticker: XSGI |
| ISIN: LU0322253229 |
This fund provides targeted exposure to the global infrastructure sector, a critical component of economic function and growth. It invests in companies responsible for owning and operating essential physical assets across the utilities, transportation, and energy sectors. This includes businesses involved in electricity and water provision, airports, toll roads, railways, and energy pipelines. The non-discretionary demand for these services typically results in stable, long-term, and predictable revenue streams for the underlying companies. This characteristic can provide defensive qualities, potentially offering resilience during periods of market volatility and economic downturns compared to broader equity investments.
By taking a global approach, the investment strategy offers broad diversification across various geographic regions, including both developed and emerging markets, which helps to mitigate country-specific risks. A key advantage of infrastructure assets is their potential to act as an inflation hedge, as revenues are often contractually linked to inflation rates. The sector is also poised to benefit from powerful long-term secular trends, including global population growth, rapid urbanization, and significant government spending aimed at modernizing aging infrastructure and developing new projects. The fund's swap-based structure is designed for efficient index tracking, and its policy of reinvesting dividends is well-suited for investors focused on long-term capital appreciation.