XTrackers DAX Income UCITS ETF 1D

Issuer: Xtrackers

Asset Class: Equity

TER: 9bps

Trading Currency: GBX

Pays Income: False

Listing Date: 23 Aug 2013

Ticker: XDDX

ISIN: LU0838782315

This financial product offers investors a strategic way to gain exposure to the German stock market, which is widely regarded as the economic engine of Europe. It tracks an index composed of the largest and most liquid German companies, providing a core holding that reflects the performance of Germany's leading blue-chip corporations. However, it distinguishes itself from traditional market-cap-weighted indices by incorporating a crucial layer of Environmental, Social, and Governance (ESG) screening, catering to the growing demand for sustainable investment solutions.

The underlying index applies specific ESG criteria to the traditional universe of German stocks. This methodology systematically excludes companies based on their involvement in controversial business activities such as controversial weapons, tobacco production, thermal coal, and oil sands. Furthermore, it filters out companies that are found to be in violation of the globally recognized principles of the United Nations Global Compact. This results in a portfolio that not only captures the essence of the German equity market but also aligns with the values of socially conscious investors, aiming to mitigate risks associated with poor corporate governance and negative environmental or social impacts.

By investing in this product, individuals can achieve targeted exposure to a developed, export-oriented economy while adhering to principles of responsible investing. The fund utilizes a physical replication method, meaning it directly holds the shares of the constituent companies, which provides transparency and avoids the counterparty risk associated with synthetic replication. This makes it a suitable instrument for those seeking a straightforward, cost-effective, and ESG-compliant vehicle to invest in the German market's long-term growth potential.