XTrackers Global Aggregate Bond Swap UCITS ETF 1D

Issuer: Xtrackers

Asset Class: Fixed Income

TER: 15bps

Trading Currency: GBX

Pays Income: False

Listing Date: 01 Jul 2014

Ticker: XBAG

ISIN: LU0942970103

This fund offers a core fixed-income holding for investors seeking global diversification coupled with adherence to sustainability principles. It provides exposure to a broad basket of investment-grade government and corporate bonds from both developed and emerging markets worldwide. This makes it a potential foundational component for portfolios aiming for stable income and capital preservation, while diversifying risk across numerous countries, currencies, and issuers within a single, cost-effective product.

The fund’s strategy is not just about broad market exposure; it integrates stringent Environmental, Social, and Governance (ESG) criteria by tracking a sustainable and socially responsible index. This underlying benchmark applies specific screens to exclude issuers involved in controversial business activities such as controversial weapons, tobacco, and thermal coal. Furthermore, it incorporates MSCI's ESG ratings to select bonds from issuers with stronger sustainability profiles relative to their peers. This dual approach of negative screening and positive tilting ensures the portfolio aligns with the values of socially conscious investors without sacrificing the breadth of the global bond market.

By tracking a currency-hedged benchmark, the investment aims to mitigate the impact of foreign exchange fluctuations against its base currency, providing a purer reflection of the underlying bond performance. This feature is particularly beneficial for investors looking to reduce volatility stemming from currency movements in their international fixed-income allocation. The fund is suitable for those seeking a single-ticket solution for diversified, ESG-compliant, global bond exposure.