Xtrackers S&P 500 GARP UCITS ETF
| Issuer: Xtrackers |
| Asset Class: Equity |
| TER: 25bps |
| Trading Currency: USD |
| Pays Income: False |
| Listing Date: 06 Nov 2025 |
| Ticker: XUGA |
| ISIN: IE0001TLQX55 |
This fund offers exposure to a specific segment of the U.S. large-cap equity market by tracking an index based on the 'Growth at a Reasonable Price' (GARP) investment philosophy. The strategy aims to bridge the gap between traditional growth and value investing. It starts with the S&P 500 universe and systematically selects companies that demonstrate strong growth characteristics but trade at sensible valuations. The core objective is to capture the upside potential of growing businesses while avoiding the excessive prices often associated with high-growth stocks, thereby seeking a balanced approach to long-term capital appreciation.
The underlying benchmark employs a multi-step screening process to construct its portfolio. Initially, it identifies the 75 companies within the S&P 500 that exhibit the highest growth scores, which are calculated based on three-year earnings-per-share growth and sales-per-share growth. Subsequently, from this narrowed-down group, the index selects the 50 constituents with the strongest combined quality and value metrics. This final score is determined by analyzing factors such as return on equity, financial leverage, and the earnings-to-price ratio. This rigorous methodology results in a concentrated portfolio of what it deems to be high-quality, fundamentally sound companies with solid growth prospects that are not overvalued.
This product can serve as a strategic core holding for investors seeking a refined exposure to U.S. equities, differing from standard market-cap-weighted approaches. It may appeal to those who are cautious about high-valuation growth sectors but still want to participate in market growth. By combining quality, value, and growth factors, the fund aims to provide a resilient performance profile across different market cycles. It is designed for individuals looking for a systematic, factor-based solution to gain access to large American corporations that balance robust operational performance with disciplined valuation criteria.
