XTrackers MSCI EMU UCITS ETF 1D
| Issuer: Xtrackers |
| Asset Class: Equity |
| TER: 12bps |
| Trading Currency: GBX |
| Pays Income: False |
| Listing Date: 14 Dec 2012 |
| Ticker: XD5E |
| ISIN: LU0846194776 |
This fund provides targeted exposure to the equity markets of the European Economic and Monetary Union (EMU) by tracking a well-established benchmark index. The investment strategy is designed to capture the performance of large and mid-capitalisation companies across the developed economies that have adopted the Euro as their currency. This focus distinguishes it from broader European funds, which may include exposure to non-Euro countries like the United Kingdom and Switzerland. By aiming to replicate its benchmark, the fund offers a representative snapshot of the Eurozone's corporate landscape, encompassing approximately 85% of the publicly traded, free-float-adjusted market value within the region.
The underlying portfolio is diversified across numerous sectors and EMU member states, with significant weightings typically allocated to economic powerhouses such as France and Germany. This broad diversification helps to spread risk across different industries and geographies within the single currency bloc. As a physically replicated product, the fund holds the actual constituent securities of the index, which can provide investors with a sense of direct ownership and transparency. It serves as a valuable tool for investors who are optimistic about the Eurozone's economic trajectory and wish to participate in the growth of its leading companies.
This investment is suitable as a core building block for the European equity component of a global portfolio. It can be used for long-term strategic allocation or as a more tactical instrument to express a specific view on the Euro area's market performance relative to other regions. It offers a cost-effective and liquid method for gaining access to a diverse basket of established, blue-chip European corporations that are key players in the global economy. This provides a straightforward way to invest in the consolidated strength of the Eurozone market.
