Xtrackers MSCI AC World ESG Screened UCITS ETF 1C

Issuer: Xtrackers

Asset Class: Equity

TER: 25bps

Trading Currency: GBP

Pays Income: False

Listing Date: 24 Mar 2025

Ticker: SCXW

ISIN: LU2903252349

The fund is designed to provide comprehensive exposure to the global equity market while adhering to specific environmental, social, and governance (ESG) criteria. It aims to track the performance of the MSCI AC WORLD ESG Screened Select Index, which represents large and mid-capitalisation stocks across both developed and emerging market countries. The index methodology incorporates an ESG screening process, systematically excluding companies involved in controversial business activities such as controversial weapons, tobacco, and thermal coal, as well as those that violate the principles of the United Nations Global Compact. This approach offers a foundational investment that covers the world's stock markets but with an integrated layer of sustainability, making it a suitable core holding for responsible investors.

Employing a direct, physical replication strategy, the investment vehicle holds the actual securities that constitute the underlying index, ensuring transparent and precise tracking. This provides investors with direct ownership in a highly diversified portfolio of thousands of companies from various sectors and regions, including major economies like the United States, Japan, and China, alongside smaller emerging markets. The market-capitalisation weighting scheme means the portfolio's allocation is tilted towards the largest global corporations, reflecting their significant influence on the world economy. This broad diversification helps to mitigate concentration risk and smooths volatility compared to more narrowly focused investments.

This instrument is well-suited for investors with a long-term horizon who are seeking capital appreciation through a single, cost-effective solution for global equity exposure. Its accumulating share class structure automatically reinvests all dividend income back into the portfolio, leveraging the power of compounding to potentially enhance long-term growth without generating taxable income events for the investor. The built-in ESG filter also appeals to individuals who wish to ensure their capital is not allocated to companies with poor sustainability profiles. It serves as an excellent building block for a diversified portfolio, combining broad market access with key responsible investing principles.