Xtrackers MSCI World High Dividend Yield ESG UCITS ETF 1D
| Issuer: Xtrackers |
| Asset Class: Equity |
| TER: 25bps |
| Trading Currency: USD |
| Pays Income: False |
| Listing Date: 20 Oct 2023 |
| Ticker: XZDW |
| ISIN: IE000NS5HRY9 |
This investment product is designed to provide exposure to a portfolio of global companies that demonstrate strong dividend-paying characteristics while adhering to stringent environmental, social, and governance (ESG) standards. The underlying strategy focuses on large and mid-capitalization stocks across developed markets, selecting constituents that exhibit higher-than-average dividend yields compared to the broader market. This approach aims to deliver a consistent income stream for investors, making it a potentially suitable option for those prioritizing regular cash flows from their equity holdings. The core objective is to reflect the performance of an index that combines a high-yield factor with responsible investment principles.
The methodology integrates a comprehensive ESG screening process. It actively excludes companies involved in business activities deemed controversial, such as the production of controversial weapons, tobacco, and thermal coal, as well as those failing to meet specific social responsibility criteria. Furthermore, the strategy incorporates a low-carbon tilt, aiming to reduce the portfolio's carbon footprint relative to its parent index. This dual focus on both income generation and sustainability seeks to cater to investors who wish to align their financial goals with positive environmental and social outcomes without compromising on the pursuit of yield.
By offering diversified exposure to global dividend-paying stocks within a responsible framework, this fund can serve as a core component of a well-rounded portfolio. It is particularly relevant for investors seeking to supplement their income, manage risk through diversification across geographies and sectors, and invest in a manner that reflects their personal values. The strategy provides a systematic way to access a basket of high-quality, income-producing companies that have been vetted for their commitment to sustainable business practices.
