New equity ETFs from Xtrackers on Xetra: Four factor strategies combined with climate protection and sustainability for companies from industrialised countries
New equity ETFs from Xtrackers on Xetra: Four factor strategies combined with climate protection and sustainability for companies from industrialised countries
Since Monday, four new exchange traded funds from Xtrackers are tradable on Xetra and via the Börse Frankfurt trading venue.
The new ETFs offer investors the opportunity to invest in large and medium-sized companies from industrialised countries that are selected and weighted according to an optimisation approach, taking into account factors like climate protection and sustainability.
Companies that have an MSCI ESG rating of BB or lower, are active in controversial business areas such as nuclear weapons, tobacco products, alcohol, gambling, fossil fuel extraction and power generation from thermal coal or do not comply with the principles of the UN Global Compact are generally excluded.
After applying the exclusion criteria, the selection and weighting of the companies is based on their valuation in comparison to their peer group, whereby a distinction is made between four strategic approaches: Minimum Volatility, Momentum, Quality and Value.
The Xtrackers MSCI World Minimum Volatility ESG UCITS ETF focuses on companies with low volatility. The approach aims to minimise downside risks.
The Xtrackers MSCI World Momentum ESG UCITS ETF invests in stocks with high price momentum. The selection takes into account stocks that have achieved above-average price performance in the past six to twelve months.
The Xtrackers MSCI World Quality ESG UCITS ETF selects companies based on quality metrics. These include return on equity, debt to equity and the movements in a company's net earnings (earnings variability).
Similar to the quality approach, the value strategy with the Xtrackers MSCI World Value ESG UCITS ETF also relies on fundamental indicators to identify companies with strong markets that are classified as undervalued. Substance characteristics such as the price-to-book ratio (P/B ratio), the price/earnings ratio (P/E ratio), earnings forecasts or the operating cash flow are used for this purpose.
Name | Asset class | ISIN | Ongoing charges | Distribution policy | Reference index |
Xtrackers MSCI World Minimum Volatility ESG UCITS ETF | Equity ETF | 0.25 per cent | accumulating | MSCI World Minimum Volatility Low Carbon SRI Screened Select Index | |
Xtrackers MSCI World Momentum ESG UCITS ETF | Equity ETF | 0.25 per cent | accumulating | MSCI World Momentum Low Carbon SRI Screened Select Index | |
Xtrackers MSCI World Quality ESG UCITS ETF | Equity ETF | 0.25 per cent | accumulating | MSCI World Quality Low Carbon SRI Screened Select Index | |
Xtrackers MSCI World Value ESG UCITS ETF | Equity ETF | 0.25 per cent | accumulating | MSCI World Value Low Carbon SRI Screened Select Index |
The product offering in Deutsche Börse's XTF segment currently comprises a total of 2,047 ETFs. With this selection and an average monthly trading volume of around €16 billion, Xetra is the leading trading venue for ETFs in Europe.