Xtrackers ESG Global Government Bond UCITS ETF 3D USD Hedged

Issuer: Xtrackers

Asset Class: Fixed Income

TER: 25bps

Trading Currency: USD

Pays Income: False

Listing Date: 15 Dec 2021

Ticker: XZUD

ISIN: LU2385068320

This investment product offers exposure to the global government bond market with an integrated Environmental, Social, and Governance (ESG) framework. It is designed for investors seeking a core fixed-income holding that provides diversification across multiple developed economies while adhering to sustainability principles. The strategy involves investing in fixed-rate, local currency, investment-grade sovereign debt issued by developed countries. The inclusion of an ESG filter means that countries are evaluated and weighted based on their performance across various sustainability metrics, such as political stability, civil rights, resource management, and climate change policies. This approach aims to invest in countries that demonstrate stronger and more stable governance and societal structures.

By focusing on government bonds from developed nations, the portfolio primarily consists of securities with high credit quality, which can help mitigate credit risk and provide stability during periods of market volatility. This makes it a suitable component for conservative investors or for balancing higher-risk assets like equities within a broader portfolio. The global diversification helps to reduce concentration risk associated with any single country's economic or political events. As a distributing share class, it aims to provide regular income to investors, derived from the coupon payments of the underlying bonds. This fund represents a way to gain stable, diversified fixed-income exposure while supporting countries with better ESG practices.